Tuesday, November 15, 2022

Express Grain Still Owes Bank $35.8 Million

 This post is reprinted with permission of the Taxpayers Channel (Greenwood)

In the ongoing saga of the bankruptcy of Express Grain Terminals and its companion companies, Express Processing and Express Biodiesel (together, "EG"), new details have emerged regarding the money that UMB Bank has lost in the whole debacle.

In recent court filings by UMB Bank in the companion cases, UMB has disclosed that the Express Grain bankruptcy estate still owes the bank $35.8 million dollars, most of it in unsecured debt.

This fact emerged after EG petitioned the court to dismiss the bankruptcy cases for Express Biodiesel and Express Processing. According to their attorney Craig Geno:

The Debtor is required to file its disclosure statement and plan of reorganization on or before August 8, 2022.

However, there are few, if any, assets to be distributed in this case that are not subject to an order or orders lifting the automatic stay.

In addition, further administration of this case would only result in additional administrative expenses that can't and/or won't be paid.

Accordingly, there is no need for this Debtor to remain in Chapter 11 and the dismissal of this case is in the best interest of all creditors, all parties-in-interest and the Debtor. The Court shall retain jurisdiction with respect to the filing of monthly operating reports through the date the case is dismissed and the payment of fees due and owing to the Office of the United States Trustee.

The Motion is in the best interests of all creditors, parties-in-interest and the Debtor moves the Court for an order granting the Motion and dismissing this case.

To view EG's motion, see here: Express Processing Motion to Dismiss Bankruptcy Case

That's when UMB Bank filed its objection:

UMB asserts a security interest in substantially all of the Debtors' personal property including, without limitation, inventory, accounts, and farm products. In light of the 557 grain settlement and sale of substantially all of the Debtors' assets, UMB filed amended proofs of claim in the amount of $35,802.824.72, which at this point is primarily unsecured.

UMB Bank believes that some of the residual assets of the two subsidiary companies "might be best resolved in the bankruptcy proceedings. Until additional information and analysis are performed, the status quo should be maintained and it may be premature to dismiss the Ancillary Debtors' cases."

To see UMB Bank's entire objection, click here: UMB Bank's Objection to Motion to Dismiss

EG filed for bankruptcy when UMB called all its loans, totaling $70.6 million in September 2021. UMB called the loans when it said it discovered that EG had filed false reports inflating its grain holdings, which UMB Bank was relying upon as collateral for the bank loans. See our previous reporting here: UMB Bank levels new fraud accusations against John Coleman and Express Grain

Later, EG had its state grain licenses revoked by the Mississippi Department of Agriculture and Commerce, after MDAC determined that EG had submitted falsified audit reports which concealed EG's desperate financial condition. See our previous reporting here: Mississippi Department of Agriculture VOIDS Express Grain warehouse licenses due to fraud

In all, $218 million in claims were filed against EG, which has now liquidated for somewhere around $85 million. In the process, farmers were left unpaid for $48 million in grain they delivered to EG. Less than $9 million was ultimately paid to a handful of the farmers in the 557 Grain Settlement Agreement. See our previous reporting here: Bankrupt Express Grain pays out $57.6 million to bank, finance companies, and a few farmers

UMB Bank's share of the 557 Grain Settlement Agreement was $10.4 million.

UMB Bank bid for and won almost all of the physical assets of EG at the bankruptcy auction for $25 million, $4.5 million more than the next highest bidders. In the end, Frank Brumfield and Delta Grain purchased the grain warehouses, while Thoroughbred purchased the Greenwood oil mill.

In all, UMB Bank has received around $35 million of the $70.6 million it is owed by EG. UMB Bank had believed that it held EG collateral sufficient to cover the entire $70.6 million, but it turned out that the physical assets were highly overvalued, while EG had sold most of the grain collateral to other companies without informing UMB Bank.

Meanwhile, all the parties are still awaiting a ruling by Federal District Court Judge Henry Wingate on UMB's motion to dismiss the farmers' lawsuit against the bank, filed by Lexington attorney Don Barrett. The farmers are accusing UMB Bank of being in cahoots with EG to keep the company afloat until the farmers delivered their grain, and then shanghaiing the grain to pay off UMB's loans to EG. UMB Bank denies these accusations, claiming it was cheated by EG along with the rest of the creditors. See our previous reporting on this case here: Farmers' Attorney Don Barrett continues to pursue UMB Bank in Express Grain debacle


4 comments:

Anonymous said...

And yet John and Michael Coleman, and their families, still enjoy expensive meals, high dollar vacations, private school, etc. They live large off of stolen money. Must be nice.

Anonymous said...

waiting on wingate-

Anonymous said...

Can I get some barley from EG to homebrew beer?

Anonymous said...

Maybe when the Mississippi river rises again, somebody will take Michael and John Coleman for a nice swim.


Recent Comments

Search Jackson Jambalaya

Subscribe to JJ's Youtube channel

Archives

Trollfest '09

Trollfest '07 was such a success that Jackson Jambalaya will once again host Trollfest '09. Catch this great event which will leave NE Jackson & Fondren in flames. Othor Cain and his band, The Black Power Structure headline the night while Sonjay Poontang returns for an encore performance. Former Frank Melton bodyguard Marcus Wright makes his premier appearance at Trollfest singing "I'm a Sweet Transvestite" from "The Rocky Horror Picture Show." Kamikaze will sing his new hit, “How I sold out to da Man.” Robbie Bell again performs: “Mamas, don't let your babies grow up to be Bells” and “Any friend of Ed Peters is a friend of mine”. After the show, Ms. Bell will autograph copies of her mug shot photos. In a salute to “Dancing with the Stars”, Ms. Bell and Hinds County District Attorney Robert Smith will dance the Wango Tango.

Wrestling returns, except this time it will be a Battle Royal with Othor Cain, Ben Allen, Kim Wade, Haley Fisackerly, Alan Lange, and “Big Cat” Donna Ladd all in the ring at the same time. The Battle Royal will be in a steel cage, no time limit, no referee, and the losers must leave town. Marshand Crisler will be the honorary referee (as it gives him a title without actually having to do anything).


Meet KIM Waaaaaade at the Entergy Tent. For five pesos, Kim will sell you a chance to win a deed to a crack house on Ridgeway Street stuffed in the Howard Industries pinata. Don't worry if the pinata is beaten to shreds, as Mr. Wade has Jose, Emmanuel, and Carlos, all illegal immigrants, available as replacements for the it. Upon leaving the Entergy tent, fig leaves will be available in case Entergy literally takes everything you have as part of its Trollfest ticket price adjustment charge.

Donna Ladd of The Jackson Free Press will give several classes on learning how to write. Smearing, writing without factchecking, and reporting only one side of a story will be covered. A donation to pay their taxes will be accepted and she will be signing copies of their former federal tax liens. Ms. Ladd will give a dramatic reading of her two award-winning essays (They received The Jackson Free Press "Best Of" awards.) "Why everything is always about me" and "Why I cover murders better than anyone else in Jackson".

In the spirit of helping those who are less fortunate, Trollfest '09 adopts a cause for which a portion of the proceeds and donations will be donated: Keeping Frank Melton in his home. The “Keep Frank Melton From Being Homeless” booth will sell chances for five dollars to pin the tail on the jackass. John Reeves has graciously volunteered to be the jackass for this honorable excursion into saving Frank's ass. What's an ass between two friends after all? If Mr. Reeves is unable to um, perform, Speaker Billy McCoy has also volunteered as when the word “jackass” was mentioned he immediately ran as fast as he could to sign up.


In order to help clean up the legal profession, Adam Kilgore of the Mississippi Bar will be giving away free, round-trip plane tickets to the North Pole where they keep their bar complaint forms (which are NOT available online). If you don't want to go to the North Pole, you can enjoy Brant Brantley's (of the Mississippi Commission on Judicial Performance) free guided tours of the quicksand field over by High Street where all complaints against judges disappear. If for some reason you are unable to control yourself, never fear; Judge Houston Patton will operate his jail where no lawyers are needed or allowed as you just sit there for minutes... hours.... months...years until he decides he is tired of you sitting in his jail. Do not think Judge Patton is a bad judge however as he plans to serve free Mad Dog 20/20 to all inmates.

Trollfest '09 is a pet-friendly event as well. Feel free to bring your dog with you and do not worry if your pet gets hungry, as employees of the Jackson Zoo will be on hand to provide some of their animals as food when it gets to be feeding time for your little loved one.

Relax at the Fox News Tent. Since there are only three blonde reporters in Jackson (being blonde is a requirement for working at Fox News), Megan and Kathryn from WAPT and Wendy from WLBT will be on loan to Fox. To gain admittance to the VIP section, bring either your Republican Party ID card or a Rebel Flag. Bringing both and a torn-up Obama yard sign will entitle you to free drinks served by Megan, Wendy, and Kathryn. Get your tickets now. Since this is an event for trolls, no ID is required. Just bring the hate. Bring the family, Trollfest '09 is for EVERYONE!!!

This is definitely a Beaver production.


Note: Security provided by INS.

Trollfest '07

Jackson Jambalaya is the home of Trollfest '07. Catch this great event which promises to leave NE Jackson & Fondren in flames. Sonjay Poontang and his band headline the night with a special steel cage, no time limit "loser must leave town" bout between Alan Lange and "Big Cat"Donna Ladd following afterwards. Kamikaze will perform his new song F*** Bush, he's still a _____. Did I mention there was no referee? Dr. Heddy Matthias and Lori Gregory will face off in the undercard dueling with dangling participles and other um, devices. Robbie Bell will perform Her two latest songs: My Best Friends are in the Media and Mama's, Don't Let Your Babies Grow up to be George Bell. Sid Salter of The Clarion-Ledger will host "Pin the Tail on the Trial Lawyer", sponsored by State Farm.

There will be a hugging booth where in exchange for your young son, Frank Melton will give you a loooong hug. Trollfest will have a dunking booth where Muhammed the terrorist will curse you to Allah as you try to hit a target that will drop him into a vat of pig grease. However, in the true spirit of Separate But Equal, Don Imus and someone from NE Jackson will also sit in the dunking booth for an equal amount of time. Tom Head will give a reading for two hours on why he can't figure out who the hell he is. Cliff Cargill will give lessons with his .80 caliber desert eagle, using Frank Melton photos as targets. Tackleberry will be on hand for an autograph session. KIM Waaaaaade will be passing out free titles and deeds to crackhouses formerly owned by The Wood Street Players.

If you get tired come relax at the Fox News Tent. To gain admittance to the VIP section, bring either your Republican Party ID card or a Rebel Flag. Bringing both will entitle you to free drinks.Get your tickets now. Since this is an event for trolls, no ID is required, just bring the hate. Bring the family, Trollfest '07 is for EVERYONE!!!

This is definitely a Beaver production.

Note: Security provided by INS
.