Express Grain farm group seeks appointment of Chapter 11 trustee

By Sarah Lizee

Olympia, Wash., Nov. 3 – Express Grain Terminals, LLC should have a Chapter 11 trustee appointed to its case, a large group of farm businesses said in a motion filed Wednesday with the U.S. Bankruptcy Court for the Northern District of Mississippi.

The group noted that as of Wednesday, the company has not filed its schedules of statement of financial affairs, making it impossible to know the total extent of the company’s debt.

“But based on the claims that have been asserted in pleadings by just a few creditors, it is clear that Express Grain has no hope of reorganization,” the group said in its motion.

The group said a number of creditors, including the farm group and their production lenders, are asserting competing liens on the same assets – the pre-petition and post-petition corn and soybean.

“It cannot be denied that the local farmers’ hard work produced all pre- and post-petition corn and soybeans on which Express Grain’s alleged secured lenders, UMB Bank, StoneX and Maquarie, assert a lien,” the group said.

“These companies have millions, if not billions in capital, and can afford to wait while the debtor burns through the corn and soybeans to pay the administrative expenses of this case. The farm group does not have that luxury.”

The group added that the bankruptcy case has devasted its businesses, and has severely impacted the economic viability of the entire Delta area.

“While Express Grain’s secured lenders will live to fight another day, it is not at all clear that many in the Farm Group will be so lucky, particularly if this company is allowed to continue to operate as a debtor-in-possession,” the group said.

The farm group said that appointment of a Chapter 11 trustee to liquidate the business and prevent further losses is in the best interest of creditors of the estate.

Greenwood, Miss.-based Express Grain Terminals is an agricultural processing and marketing company. It filed bankruptcy on Sept. 29 under Chapter 11 case number 21-11832.

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