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Express Grain disclosure statement draws objection from U.S. trustee
By Sarah Lizee
Olympia, Wash., Sept. 20 – Express Grain Terminals, LLC’s disclosure statement for its Chapter 11 plan drew an objection from Region 5 U.S. trustee David W. Asbach, according to documents filed with the U.S. Bankruptcy Court for the Northern District of Mississippi.
The U.S. trustee said he objects to the priority claims being paid over a period of 60 months and said the known priority claims should be paid in full at confirmation.
Asbach also said he objects to the disclosure statement to the extent that the debtor’s creditors have not been provided with a contingency plan in case the liquidating trustee must be changed.
The U.S. trustee also objects to the extent that the liquidating trustee’s specified duties and obligations do not include the obligation to file post-confirmation monthly operating reports, or to oversee and ensure the timely payment of U.S. trustee quarterly fees.
Asbach said he is also seeking clarification on the “discharge” of debtor’s directors, officers, managers, or other members of any governing body of the debtor.
“To the extent that the term ‘discharge’ is construed to mean the canceling of any debts owed to the debtor by its directors, officers, managers, or other members of any governing body of the debtor, the UST objects to same,” Asbach said.
Lastly, he objects to the exculpation and indemnification provisions of the disclosure statement asserting that they are overbroad, particularly as to the liquidating trustee who has not yet been approved.
A hearing on the disclosure statement is scheduled for Oct. 6.
Greenwood, Miss.-based Express Grain Terminals is an agricultural processing and marketing company. It filed bankruptcy on Sept. 29, 2021 under Chapter 11 case number 21-11832.
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