Thursday, December 30, 2021

Express Grain Prez Won't Talk

 Surprise, surprise.  Express Grain President John Coleman won't talk during his bankruptcy proceedings.  The Taxpayers Channel (Greenwood) reported: 

All the while that the Express Grain bankruptcy saga has been ongoing, EG's president John Coleman has also been waging his own bankruptcy case.

But at the bankruptcy creditors meeting of November 24, 2021, Mr. Coleman's attorney, Craig Geno, informed the presiding official, Ms. Abigail Marbury, that Mr. Coleman would not answer any questions from the creditors or their attorneys.

Ms. Marbury reported in the official record, the following:

Debtor [John Coleman] filed a voluntary Motion to Dismiss approximately 6 minutes before the convening of the meeting of creditors. Debtor's counsel made clear that Debtor would not answer any questions and requested that the meeting be continued. In light of the refusal to answer questions, and the pending Motion to Dismiss, the UST has continued the meeting of creditors.

The official minutes of the creditors meeting in Mr. Coleman's personal bankruptcy case may be seen here: Proceedings of the Creditors Meeting

As can be seen, both Mr. Coleman and his attorney attended the meeting, but Mr. Coleman was not questioned. Normally at such a meeting, the creditors are permitted to question the bankrupt debtor, and to discuss ways in which they might be paid at least some of what is owed to them.

Also present were Jacob Jenkins, representing Dr. Michael Coleman, John Coleman's father and co-owner of Express Grain. 

Three attorneys representing the largest creditor, UMB Bank, also attended. UMB claims debts around $70 million owed by Express Grain.

Attorneys representing production lenders Bank of Commerce and Southern Ag Credit also attended. These creditors have liens on the crops that were financed by the farmers with crop loans.

Several dozen farmers who are owed money were also represented by their attorneys.

Indeed, Mr. Coleman's attorney filed a motion to dismiss the bankruptcy case just minutes before the scheduled time for the creditors meeting. That motion to dismiss may be seen here: Motion to Dismiss Coleman bankruptcy case

Coleman's attorney states that pursing the case is not "affordable" to Mr. Coleman because his previous salary has been eliminated.

Although Coleman claims that he has very few creditors, a review of his filing listing the creditors shows they have claims of almost $69 million against him. That bankruptcy schedule may be seen here: Individual Debtor's Schedules

In all, John Coleman claims he owns assets worth $613,334.22. The value of his interest in Express Grain (of which he owns .77%) is listed as "unknown."

As to his debts at the time of the bankruptcy filing, Coleman lists $186,884.00 as debt owed by him to Express Grain. These appear in other filings to be mostly personal credit card charges Coleman placed on a company credit card, and which he would repay to EG from time to time.

But John Coleman's largest listed creditor is UMB Bank, with claims of almost $69 million. These debts are said to be shared with others, presumably Express Grain itself.

Many of the creditors in the Express Grain bankruptcy have filed objections to Coleman's motion to drop his bankruptcy case. These objections may be seen here:

Farmers Objection to Dismissal

Production Lenders Objection to Dismissal

MS Department of Agriculture Objection to Dismissal

The Farmers basically assert that Mr. Coleman has "converted corporate assets to his own personal use" before the bankruptcy was filed. In addition, they assert the right to question Coleman at a creditors meeting, since he refused to answer questions at the first attempt to hold such a meeting. They also express concern that Coleman may still be involved in the management of Express Grain, and that Express Grain has a duty to pursue possible claims against Coleman.

Left unsaid and unasked is the question of how Express Grain would pursue possible claims against John Coleman, when both Express Grain and Coleman are represented by the same attorney.

The Production Lenders focus on their claim that Coleman has not listed all his creditors, and that bankruptcy law, they claim, does not permit him to dismiss his bankruptcy at this time. They assert that dismissal of Coleman's bankruptcy case is not in the best interest of the creditors.

As for the MS Department of Agriculture and Commerce, it asserts that:

The Department has reason to believe that the Debtor, John Coleman, acting for and on behalf of Express Grain Terminals, LLC, Case No. 21-11832-SDM, submitted documentation to the Department which was materially false, the extent and details of which cannot be disclosed at this time, with regard to the Department's issuance of its current Grain Warehouse License.

MDAC concludes: 

It is in the best interest of creditors and parties in interest, including the Department, that the Court maintain jurisdiction over John Coleman and all possible assets of the Debtor.

As of this afternoon, the bankruptcy judge has not ruled on Coleman's motion to dismiss his case. Instead, a hearing on the matter has been set for Thursday, January 6, 2022.

Stay tuned. 

18 comments:

Anonymous said...

“Although Coleman claims that he has very few creditors, a review of his filing listing the creditors shows they have claims of almost $69 million against him…
But John Coleman's largest listed creditor is UMB Bank, with claims of almost $69 million.”

Sounds like his “claim” that he has very few creditors is correct. He has one.

Anonymous said...

You can't get blood out of a turnip-

Anonymous said...

I would not only keep my mouth shut, but I believe I would get out of town. He will have to do it by truck or car, because they would pick him up at an airport in no time. I witnessed this once in Miami airport.

Anonymous said...

Is it just me, or do a lot of these old-time "super lawyers" engage in some questionable practices?

I would be embarrassed to file a motion on my way into court, and then cite that motion as the basis for requesting a continuance.

Anonymous said...

So, let me get this straight. The farmer brings the beans to the storage bin and gets a check (some kind of “draft”). The farmer deposits check in the bank and it bounces. But, these beans now are property of the bank. I fully understand why there might ba a little tension here.

Anonymous said...

I've a farmer friend that watches RFDTV like many watch CNN or FOX. I asked him how this was being played on their farm news network. His reply was other than me mentioning it, he would know nothing about it. Farmers lose millions, and RFDTV isn't talking about it? Something is more than screwy with all this.

Anonymous said...

2:03, 'questionable'? Not really. Delay? Certainly. Will lead to a hearing, where lawyer will state that Coleman doesn't have money to pay him, ergo - dismiss.

Won't happen, but what the hell. A few more billable hours that will get paid first before any other claims against the estate.

Anonymous said...

"As to his debts at the time of the bankruptcy filing, Coleman lists $186,884.00 as debt owed by him to Express Grain. These appear in other filings to be mostly personal credit card charges Coleman placed on a company credit card, and which he would repay to EG from time to time."

You've got to be kidding me. What kind of scam business was this guy running? I owned a business (I was 100% stockholder in an Inc.). I paid my personal bills with my personal money. I paid my company bills with my company money. This con artist is paying his personal bills with company money, and now claiming the company is bankrupt. Of course, now he personally doesn't have the money to repay the company.

I know what needs to be done to him. But I won't say it on this blog.

Anonymous said...

3:30
NAILED IT

I thought that was so shady. Dr's offspring that doesnt go to med school so dad props him up. What could go wrong?

Anonymous said...

The big mystery is where all of the money went.
Switzerland, Caribbean, Bitcoin?

Anonymous said...

2:43, Pleadings filed for the purpose of delay are, by definition, unethical and constitute sanctionable conduct. I'm not saying that is what was done in this case, just pointing out the error in your analysis. Does it happen? Sure, but it is a "questionable practice."

Also, an attorney can't dismiss a case because he thinks he won't get paid. He can move to withdraw as counsel of record, but unless and until the judge orders it, he is still responsible for representing his client. Dismissing a case because one believes the client won't be able to pay him is also, therefore, a "questionable practice."

So, can the client request dismissal of his own bankruptcy case because he can't afford to pay his attorney? That will be for the judge to decide. After all, he's the one who filed it, invoking the automatic stay and other protections of the bankruptcy code.

2:03

Anonymous said...

"He will have to do it by truck or car, because they would pick him up at an airport in no time."

Pick him up for what? Has his passport been revoked? Has he been forbidden to leave Leflore County?

Anonymous said...

I miss one payment to my creditors and they take my shit. Rich folk…. Go figure.

Anonymous said...

I think Geno needs to associate criminal defense counsel for his client if he hasn't already done so. Is the client pleading the 5th Amendment at the MOC?

Anonymous said...

There is no upside for him to answer questions from creditors.

Anonymous said...

@6:41. There is absolutely an upside. Facing the creditors is an opportunity to admit your fault and start rebuilding your life in a manner of a good person.. The guy is a crook, and he isn’t willing to face the music. Answering questions is great opportunity to face the music and get a fresh start and move forward on a life of honesty and integrity. It would be a 180 degree turn from the way the Colemans have lived their lives thus far. But they won’t do it. They want to continue as deceitful, lying, dishonest individuals. Facing the creditors could have been the start to turning over a new leaf.

Anonymous said...

Two words:

Craig Geno.

He knows the rules and plays the game.

Anonymous said...

11:09 - What kind of dream world do you live in? We're not talking here about Opie getting caught throwing dirt clods at the street light and being grounded for two days.

Nobody risks the rest of their life as a free man by raising his hand and admitting guilt before any evidence rolls out in a courtroom. Nobody opens up in a come-to-Jesus meeting until he knows exactly where all the cards are stacked.

How damned naive can you be?



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