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John Coleman, others to be deposed in Express Grain bankruptcy case

Monday, February 7, 2022, 6:39 pm News Flash Archive

Deposition notices have been served on John Coleman and Dr. Michael Coleman in the Express Grain bankruptcy case. The notices were filed by the Bank of Commerce and First South Farm Credit, two of the production lenders who are owed back the money they loaned various farmers to finance crop production in 2021. The farmers cannot pay their banks back because they have not been paid for their grain by Express Grain.

The deposition notices do not reveal the nature of the questions that the banks wish the Colemans to answer. Several other employees and officers of Express Grain have also been subpoenaed to answer questions.

Both Dr. Coleman and his son John are set to be deposed February 15. These deposition notices may be seen here:

Deposition notice to Dr. Michael Coleman

Deposition notice to John Coleman

In addition, UMB Bank, Macquarie, and StoneX have also been subpoenaed. Their deposition notices do describe the areas of questioning. Those questions are of the same nature as previously disclosed in the deposition notices filed by the Farmers Group against the same three entities. See a description of those areas of questioning here: Unpaid Farmers prepare to question UMB Bank and others in Express Grain bankruptcy

UMB Bank is set to be questioned starting February 23rd. A copy of the UMB Bank deposition notice may be seen here: Deposition notice to UMB Bank

In other news, EG filed its December 2021 Monthly Operating Report with the bankruptcy court and stated that it made a profit of $8,949,124. So far since the bankruptcy filing, EG claims to have made a profit of $31,518,521. However, these figures do not appear to include the actual cost of the grain that EG is either selling or processing into meal and oil.

EG claims to have received $45,228,302 since filing bankruptcy, and to have spent $16,411,276, leaving it a cash balance of $30,228,884.

According to the recent filings, EG claims to have total assets of $167,119,884, and total liabilities of $176,734,148, almost $10 million more than previously reported.

The December 2021 Monthly Operating Report may be seen here: December 2021 Monthly Operating Report

A disclaimer was also provided, wherein the CRO states that the numbers being reported are subject to correction:

The Chief Restructuring Officer (the "CRO") has carefully reviewed the Debtor's books and records in order to make an effort to prepare this Monthly Operating Report. As the CRO has testified, the Debtor's financial and operational information comes from three different sources which do not communicate with one another. As the CRO and the Debtor's staff have begun preparing this Monthly Operating Report, they have found many discrepancies between and among those three systems. Thus, the preparation and filing of this Monthly Operating Report has been a difficult and time consuming task. The CRO is still not satisfied that the information contained in the Debtor's books and records is accurate, but the Monthly Operating Report is submitted that contains information that to the best of the CRO's efforts is as up-to-date as possible after many adjustments have been made. Nevertheless, adjustments are continuing to be made on an almost daily basis and this Monthly Operating Report may be supplemented and amended as a result.

Additional disclosures which are a part of the December 2021 Monthly Operating Report may be seen here:

December 2021 Statement of Operations

December 2021 Balance Sheet

December 2021 Disclaimer

December 2021 Cash Receipts and Disbursements

John Pittman Hey
The Taxpayers Channel

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