Monday, April 4, 2022, 4:42 pm
News Flash Archive
Today, Express Grain filed adversary suits against two medical organizations, seeking to force them to repay payments made by EG's president John Coleman on the company credit card.
Bankruptcy law allows debtors such as EG to demand repayment for payments made to outside organizations that did not benefit the debtor.
The two charges are both related to fertility treatments that Mr. Coleman charged on his company credit card just weeks before EG filed for bankruptcy protection.
One organization, Alexander's Twin Pharmacy, located in New Jersey, is being sued to return $6,122. The payment was made September 14, 2021. On its website, the pharmacy describes itself as "fertility specialists."
The other organization being sued is Mississippi Reproductive Medicine, PLLC, located in Flowood, MS. EG is demanding the return of $12,250 from the clinic. The payment was made September 11, 2021. According to its website, "Mississippi Reproductive Medicine assists women and men with fertility problems as well as a number of related health concerns."
In both cases, EG asserts, these payments were made "for the benefit of an insider (John Coleman)" to the companies being sued.
EG further asserts, in its complaints, that EG was "insolvent on the date such transfer was made." According to EG, these payments were "classic constructive fraudulent conveyance[s]" under the bankruptcy code, and EG is entitled to recover them from the payees being sued.
So far, EG has not filed an adversary complaint against Mr. Coleman in his personal bankruptcy case. EG and John Coleman are both represented by the same bankruptcy attorney, Craig Geno.
But EG has known about these personal charges made by Mr. Coleman since early on in EG's bankruptcy case. They were listed in a report prepared on October 26, 2021, and later filed in the bankruptcy case as a required disclosure. See the list of John Coleman's personal transactions owed to EG here: Statement of Financial Affairs Schedule Page 46
The two complaints filed today by Mr. Geno may be seen here:
Complaint against Alexander's Twin Pharmacy
Complaint against Mississippi Reproductive Medicine
In other news, attorney Don Barrett filed his response to UMB Bank's invoice for fees and costs involved in bringing its motion to sanction Mr. Barrett for allegedly leaking confidential information from documents stored in the privileged "data room." See our previous reporting on this matter here: UMB Bank legal bill presented in sanction order against Don Barrett; $4.4 million more owed for grain
Mr. Barrett told the court that he will pay the invoice when the court issues the order to do so. Mr. Barrett's filing today may be seen here: Don Barrett response to UMB Bank's invoice
To read all our coverage of the Express Grain bankruptcy case, see here: Index of Express Grain articles
John Pittman Hey
The Taxpayers Channel
News Flash Archive