G&R Grain bankruptcy proceedings: Update 1/17/13

Ag/Outdoor, News

January 17th, 2013 by Ric Hanson

The Trustee in the bankruptcy case of G & R Feed and Grain Company, Inc., in Portsmouth, provided another update on the matter Thursday evening. According to Deborah L. Petersen, the U.S. Department of Agriculture has accepted bids for the sale of 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. 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. The letter indicates that holders of signed credit-sale contracts do not qualify for payment from the Iowa Depositors and Seller Indemnity Fund, but you may qualify for other partial payments. Producers who sold grain for cash or who sold grain on an unsigned contract, who were not paid, may qualify
for the Indemnity Fund and may receive up to 90% of their claim, with certain limits. These producers may proceed to file their claims with the Iowa Department of Agriculture, as well as with the Bankruptcy Court.

G & R filed complete schedules in the Bankruptcy Court and all creditors and contract holders should have received a notice from the Bankruptcy Court. The Notice contains information on how to file a claim 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. 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.

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. The Trustee has a recorded message that will be updated regularly. You can hear this message at 712-328-8808, option 8. If you have legal questions, including how to file a claim, the Trustee advises that you should contact an attorney of your choice.