Friday, May 13, 2022, 6:22 pm
News Flash Archive
Bankrupt Express Grain has again petitioned the court to pay substantial fees to its bankruptcy lawyer and to CR3, the firm brought in to restructure and "turn around" EG.
CR3, which provides the CRO Dennis Gerrard and other management staff to the EG bankruptcy estate, was already paid $355,846.33 for work done up through November 13, 2021. See our reporting here: Judge approves Express Grain payment of $355,846.33 to restructuring consultants
But now, EG has petitioned the court to pay CR3 another $204,547.81 related to work done to sell the physical assets, including the warehouses and oil mill. UMB Bank won the bid to purchase those assets for $25 million at the February 25 auction.
To see the petition for this pay request, read here: EG request for payment of CR3 charges incurred in the sale of EG's assets
According to the petition, these charges will be paid out of UMB Bank's $400,000 "surcharge," paid over and above the purchase bid, and earmarked to pay the costs of the sale of the property. The surcharge is provided for by bankruptcy law so that the bankruptcy estate will not have to bear the cost of the sale. Instead, the purchaser bears part of the cost.
Further, EG has petitioned the court to pay CR3 an additional $192,361.86 in costs related to the 557 procedure used to determine who owns or has an interest in the grain and grain proceeds. The 557 process is still ongoing.
To see the petition for this "557" pay request to CR3, read here: EG request for payment of CR3 charges incurred in the 557 process
The charges either paid to CR3 or requested for payment total $752,756.
EG's lawyer is also asking for his professional charges. Craig Geno and his firm have filed two requests totaling "only" $227,604.64 in legal costs, but these do not appear to cover everything already owed to his firm.
That's because Geno is only asking payment for charges related to the sale of EG's assets and related to the 557 process. Charges for other work done, which must be substantial, are not included at this time.
The charges relating to the sale of assets total $85,629.62. These costs will be paid out of UMB Bank's $400,000 "surcharge."
The charges relating to work done on the 557 process total $141,975.02.
To see these two requests for payment, click here:
EG request for payment of Geno charges incurred in the sale of EG's assets
EG request for payment of Geno charges incurred in the 557 process
No doubt, more requests for more payments will be filed soon.
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