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Express Grain owes $60 million more than first believed to its creditors

Tuesday, January 18, 2022, 5:40 pm News Flash Archive

Yesterday, attorney Craig Geno filed amended schedules in the Express Grain bankruptcy case, and the amount owed to creditors shot up almost $60 million from the previous disclosures.

This means that there will be far less money to pay the farmers at the end of the day.

Most of this difference is due to the large financing loans that Express Biodiesel owes which were not included in the original filings for Express Grain Terminals in early November 2021.

But now that the court has consolidated the Express Grain cases, revised filings were required, and the very large additional debts owed by the Express Grain companies appeared.

This means that the farmers will have to split any money left over after the sale of the company with creditors that are owed twice as much as the farmers themselves.

In addition, the $9 million discrepancy first reported by The Taxpayers Channel in the amount actually owed to the farmers still exists in the new filings. The amount according to the Amended Grain Report is some $9 million more than that reported in the Amended Declaration.

To see our original reporting, click here: Express Grain bankruptcy filings show more than $115 million in debts

At that time, it appeared that EG actually owed the farmers almost $41 million instead of the $31 million in EG's official filings. The higher figure was disclosed in the line-by-line "Grain Report," which did not (and still does not) agree with the report included in the Declarations.

The original filings back in November are all attached to the article linked above.

But yesterday, in EG's new filings, far greater combined debt was disclosed. The revised value of the assets of the companies has dropped slightly to just over $96 million.

But the debt to creditors has ballooned from $106 million to $156 million.

And if the additional $9 +million owed to the farmers (according to the grain reports) is added in, that raises the debt to $165 million.

If the total owed to the farmers is $40 million, and the debt owed UMB Bank and various others is $70 million, that means that another $55 million is owed to these other non-secured creditors.

Some of their names and the amounts owed to them are as follows:

$9,200,000.00 AMCREF CDE Fund 34, LLC
$8,637,200.00 AMCREF QLICI
$6,930,000.00 MuniStrategies Sub-CDE#26, LLC
$5,880,000.00 Rustic Ventures, LLC
$5,000,000.00 AMCREF Fund 47, LLC
$4,999,900.00 HRF QLICI
$4,800,000.00 NMSC Federal QLICI
$3,333,333.00 NMSC Mississippi QLICI
$1,111,067.00 AMCREF Community Capital, LLC

These companies appear to be government-backed enterprises that offer easy credit to businesses trying to operate in depressed economic settings.

Click here to see the January 17th filings:

Amended Grain Report, January 17, 2022

Amended Declaration, January 17, 2022

One final interesting note: John Coleman, the president of Express Grain, is no longer signing these filings under penalty of perjury. Instead, CRO Dennis Gerrard has taken over that duty.

John Pittman Hey
The Taxpayers Channel

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