It seems John Coleman’s days as president and co-owner of Express Grain Terminal will soon end.
The saga of Express Grain Terminal (EGT) and its bankruptcy has met with a timely crossroad. Judge Selene Dunn Maddox signed an order last Friday stating, “The court expects (Express Grain) to effectively wind down operation but focus primarily on securing a buyer for the purchase of the business.”
EGT has been operating on an interim basis since it filed for bankruptcy protection back in late September of 2021. The Indianola native, Judge Maddox, noted the bankruptcy filing kept the company alive to “maximize the value of the business and assets with the end goal being a sale of the business and its assets as a going concern at the highest price possible.”
But Delta area farmers who are owed more than $30 plus million for bringing grain to EGT are in a long line of creditors including UMB Bank that has more than $70 million in loans to the grain business. It was a “calling” of those loans that forced EGT into bankruptcy. The total EGT owes is more than $156 million. Dennis Gerrard has been appointed as chief restructuring officer. An auction of the business has been set for February 25 and Judge Maddox has stated that there are interested buyers for both the storage side and the manufacturing side according to Gerrard.
Judge Maddox has also scheduled a February 7th proceeding to hear requests from farmers to liquidate the company. Thus far, the court has not appointed a trustee nor has it forced EGT into an immediate closure, “the facts and circumstances may dictate a different conclusion by the court” after the hearing, the recent order said.
Meanwhile, the class action suit filed by lawyer Don Barrett against UMB Bank for Delta area farmers continues to slowly move forward.
“There’s nothing new in my litigation. I don’t think the farmers’ interest are being treated fairly in the bankruptcy. The bankruptcy judge has at least left us alone to pursue our damages in federal court and that’s where we’re going to get relief.”
He explained that in selling the operation, “they are selling the farmer’s grain. They are losing money hand over fist. Money that would be left over and might go to farmers. They are selling the grain operation and it’s for nobody’s benefit but UMB. They have a first lien on all of that.”
In his class action suit, Barrett estimates he’ll be able to depose UMB personnel in two to three months.
“We’re deciding if we want to file individual state court suits. We’re going to honor the wishes of our farmers.”
