G & R Bankruptcy case update

Ag/Outdoor, News

January 29th, 2013 by Ric Hanson

The Trustee in the case of the Portsmouth-based G and R Feed and Grain Company Incorporated bankruptcy case, reports an informational meeting will be held on Tuesday, February 5th at 1:30 p.m. at Club 191 in Portsmouth. The meeting is informational only and claim forms will be available. Trustee Deborah Petersen says the U.S. Department of Agriculture has sold all stored grain. Each producer with a warehouse receipt for stored grain will receive a letter in the next couple of weeks from the USDA. Producers
can expect to receive a check for their stored grain from the USDA within 4 – 6 weeks after all grain is removed. Petersen says at this point, there is no action for producers to take with the USDA.

The Iowa Department of Agriculture has sent letters to producers who sold grain to G & R for cash or who sold grain on an unsigned contract and were not paid. Such individuals may qualify for the Indemnity Fund and may receive up to 90% of their claim, with certain limits from IDALS. These producers can file their claims with the Iowa Department of Agriculture, as well as with the
Bankruptcy Court. If you have a claim for a deferred price contract, or other amount due you, you should take action
to timely file a claim with the Bankruptcy Court. If you have a contract for future delivery of grain, you will soon receive notice of rejection or assumption of that contract, as the Trustee will not be fulfilling those contracts, but may have offers to purchase them or assign.

Once the decision is made, the Trustee will file the necessary notice with the Court and all holders will receive notice of the Trustee’s action. Contracts that are rejected, once approved by the Court, will have no further action required. If contracts are assumed or sold, then the producer will be required to fulfill the contract. The Trustee is gathering other information and working on liquidating all assets as soon as possible, as well as collecting all accounts due G & R, which filed for Chapter 7 bankruptcy on January 1st, 2013. The company’s estimated debt is between $1 million and $10 million. Its estimated assets are up to $50,000.