Tuesday, February 1, 2022, 7:25 pm
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This afternoon, John Coleman asked the court to convert his bankruptcy case from Chapter 11 to Chapter 7.
The motion, filed by his attorney Craig Geno, may be seen here: Motion to Convert to Chapter 7
Coleman's personal bankruptcy woes were triggered when the company he managed and owned with his father, Express Grain, filed for bankruptcy on September 29, 2021. UMB Bank called $70 million in loans that the company had borrowed from the bank, due, according to the bank, to irregularities in Express Grain's inventory figures provided to UMB Bank.
In Chapter 7 bankruptcy, the debtor no longer has any hope of paying off his creditors, and is required to sell all his non-exempt assets and hand over the money to the bankruptcy court, which then pays the creditors sometimes pennies on the dollar for the money owed to them.
Certain assets, such as a vehicle, personal items, and usually a home, are exempt from sale.
According to the motion:
At this stage of this Chapter 11 case, it does not appear that the Debtor will be able to file or submit a confirmable plan of reorganization, the Debtor has no source of income and Express Grain Terminals, LLC, the company that has employed Debtor and paid his salary for many years, is about to be liquidated and its assets sold.
So far, creditors have filed almost $92 million in claims against Coleman, including $70 million by UMB Bank. The MS Department of Revenue has filed a claim for $262,229.00. Travelers Casualty and Surety Company of America claims $1,100,000.
Several crop lenders have also filed large claims:
Bank of Commerce, $9,247,642.64
First South Farm Credit, ACA, $8,222,204.02
Southern AgCredit, ACA, $2,482,700.00
All of the claims filed so far may be seen here: Claims register
Coleman had asked the court to dismiss his bankruptcy, but the judge instead rebuked him for what she called his "bad faith conduct" during the case, such as refusing to answer questions during hearings, and then appointed an Examiner to look into the case further. See our reporting here: Bankruptcy Court rebukes John Coleman for "bad faith conduct" in his bankruptcy case
Last week, UMB Bank filed an adversary action asking the court to bar Coleman from being excused from any of the $70 million the bank says Coleman owes it. See our reporting here: UMB Bank levels new fraud accusations against John Coleman and Express Grain
The court has set a hearing date on Coleman's motion for March 24, 2022.
Meanwhile, the Creditors Meeting, which Coleman refused to participate in last November, has been set to continue on March 8. See our reporting here: John Coleman refuses to answer questions at creditors meeting
John Pittman Hey
The Taxpayers Channel
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