Menu
6:38 pm
Fair, 44°
     News Flash    Wednesday, November 30, 2022
 
News Flash Subscribe to News Flash Emails
Express Grain wants to borrow another $30 million

Monday, December 20, 2021, 4:48 pm News Flash Archive

Monday afternoon, the attorney for Express Grain applied to the bankruptcy court for permission to borrow up to $30,300,000 from UMB Bank in order to continue operations.

The motion to borrow money may be seen here: Motion to approve order for post-petition financing

Express Grain filed for bankruptcy on September 29, 2021, at which time it owed UMB Bank around $70 million. It soon became apparent that EG also owed farmers around $40 million for grain they had delivered but not been paid for.

The Taxpayers Channel's extensive reporting on this matter may be seen here:

Express Grain asks to pay management costs of $465,751.58 to outside restructuring firm

Express Grain lawyer: farmers will not be fully paid for their grain deliveries

Express Grain bankruptcy filings show more than $115 million in debts

Express Grain claims in its filing to the court that it cannot continue operations without access to some $30 million of additional financing, in the form of a revolving note. Apparently, UMB Bank, which had called the two notes for $70 million several months ago, is willing to loan an additional $30 million to EG, so long as the new loan gets "superpriority" over the claims of other creditors.

EG states that it will use the $30 million to purchase soybeans so that it can continue its crushing operation, while paying for the new beans with "cash on the barrel."

EG states that without the additional funding, "the sale of the Debtors' business and assets as a going concern is put in great jeopardy, and would cause serious and irreparable harm to Debtors and their estates if not granted."

EG warns the court that "Debtors' cash position is such that, without the availability of immediate additional capital, Debtors cannot meet operating expenses necessary" to purchase more grain, and keep paying rent, utilities, and employees' wages. If EG is forced to shut down completely, it would do great harm to the creditors and "cost approximately several hundred employees their jobs."

According to EG, UMB Bank is the only possible source of capital that is available to EG at this time.

EG is asking the court to hold an expedited hearing on its request.

John Pittman Hey
The Taxpayers Channel

News Flash Archive

 
Gallery