Saturday, July 2, 2022, 2:53 pm News Flash Archive

In what appears to be a signal that the bankrupt Express Grain properties have finally been sold off, on June 30, EG paid off its delinquent property taxes. The amount paid last Thursday was $72,508.25 on all nineteen property parcels owned by EG.

We had previously reported that EG owed a total property tax bill of $95,243.69 plus late penalties. See our reporting here: Bankrupt Express Grain owes $72,000 in delinquent property taxes, despite benefiting from ten year exemptions

In all, EG ended up paying a total of $97,045.28 due to the added late penalties.

June 30, 2022 was the deadline for closing the sale of the properties of EG. UMB Bank, which won them all at the February 25th bankruptcy auction, had informed the court that it has assigned its purchase rights to FSB Companies of Chicago, owned by Frank Brumfield, and Thoroughbred Agrifuel Holdings of Colorado.

However, as first reported by the Greenwood Commonwealth, a hitch has developed, and UMB Bank has now informed the court that it has reassigned its purchase rights as to the Greenwood oil mill portion of the property to GSMC SPE, LLC, which, according to UMB Bank's notice, "is an affiliated entity with UMB. UMB continues to negotiate with Thoroughbred regarding the terms of a sale and transfer of the Greenwood Facility assets, but such transaction has not yet been completed."

GSMC appears to be a freshly minted LLC in the state of Delaware. No other information is readily available.

This swap in assignment of Purchase Rights was carried out in order to meet the deadline of June 30th to finish closing the sale of the properties that UMB Bank won at the auction.

To see the assignment of rights notice, click here: UMB Bank Assignment of Rights to GSMC SPE, LLC

Another sign that the final closure of the sale of the properties has taken place (although no notice has been provided the court as of yet), is that the new FSB Companies subsidiary Delta Grain Company, LLC, now has its placeholder website up, which may be seen here: Delta Grain Company Website

According to the website, Delta Grain Company is now "open for business" in Sidon and Minter City. We first reported the possibility that Brumfield would be purchasing EG's properties from UMB Bank, and that in late May 2022 he had in fact already created the new Delta Grain Company. See our previous reporting here: Last legal obstacle removed from final sale of bankrupt Express Grain assets. See also the links provided therein.

As of today, however, no warehouse licenses or grain dealer licenses for Delta Grain Company have been posted on the Mississippi Department of Agriculture and Commerce website. See this link: MDAC Grain Dealers and Warehouses

Brumfield's attorney Doug Noble told the court at its June 23rd hearing that those licenses would be issued very soon by MDAC.

In other news, the court has finally approved the credit bid of Caterpillar Financial Services Corporation, also made at the bankruptcy auction, for a Caterpillar TL 1055 Telehandler that Caterpillar financed, but that had not been paid for by EG. EG owed Caterpillar $51,686.54, and the court has now approved for Caterpillar to repossess the equipment at this time. See the court order here: Agreed Order of Repossession/Credit Bid

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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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