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Express Grain bankruptcy claims total $214.5 million

Tuesday, March 29, 2022, 2:00 pm News Flash Archive

Monday, March 28 was the deadline for submitting creditors claims in the Express Grain bankruptcy case, and the final amount totals $214.5 million.

Meanwhile, the entire EG company appears headed for a liquidated value of around $85 million, meaning that the difference, $129.5 million of the claims, cannot and will not be paid out of the bankruptcy estate.

The largest individual claims are:

$70.6 million - UMB Bank
$36.1 million - StoneX
  $9.7 million - Macquarie
  $8.6 million - AMCREF Fund 50
  $8.2 million - New Markets Investment 126, LLC
  $6.9 million - MuniStrategies
  $5.9 million - Rustic Ventures
  $5.0 million - AMCREF Fund 47
  $5.0 million - Heartland Renaissance Fund Sub 32

Thus, the claims of money owed by EG to banks, lenders and repo purchasers of grain total $156 million.

The Taxpayers Channel was able to identity 137 farmers and farm companies that filed claims in the final claims register. The top ten claim amounts and farms listed are as follows:

$2,742,183.07 - Ashley Selman Farms Partnership
$2,348,120.61 - Porter Planting Company
$2,192,643.26 - Osborn Farms
$2,076,863.78 - Buck Harris Planting Company
$1,968,676.02 - Prestidge Farms II
$1,629,445.95 - Dodson Planting Company
$1,141,929.82 - Ronnie Moss Farms
   $858,717.73 - Ashton Planting Company
   $829,124.38 - Ridgecrest Farms
   $809,681.85 - William Dunn Farms II

In all, claims totaling $42.8 million were filed by farmers and farm companies in the final claims register.

However, farmers were not required to file claims if they were satisfied that the 557 Report adequately described the money they are owed, so the actual money owed to farmers will be somewhat more than that. EG bankruptcy attorney Craig Geno has put the figure near $46 million.

The claims filed may be seen here:

Claims filed sorted by amount

Claims filed sorted alphabetically

Claims filed spreadsheet

Meanwhile, the judge in the bankruptcy case has rescheduled the 557 Final Determination Hearing for April 18. According to her order, the trial may continue for up to two weeks, given the large number of parties and witnesses that will be called.

The court order may be seen here: Order Rescheduling 557 Trial for April 18, 2022

This hearing/trial is for the purpose of determining which creditors have ownership or an interest in the grain inventory, which has now been converted into cash by liquidation.

The total amount of beans claimed by various owners far exceeds the actual amount of grain that existed at the time EG declared bankruptcy. EG had sold the same beans to more than one party, and took beans owned by one party and resold them again to other parties, in order to raise money. See our previous reporting here: Filings show Express Grain repeatedly stole soybeans it had sold to others for almost two years

Because of this fraudulent practice, there are not enough beans to go around to make the bean owners whole. The court will have to sort out the various rights and claims, but in the end, won't be able to please anybody.

 


To read all our coverage of the Express Grain bankruptcy case, see here: Index of Express Grain articles

 

John Pittman Hey
The Taxpayers Channel

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