G&R Feed and Grain bankrupty case update: Sat., March 2nd 2013

Ag/Outdoor, News

March 2nd, 2013 by Ric Hanson

Deborah L. Petersen, Trustee in the Bankruptcy case for G & R Feed and Grain Co., Inc., in
Portsmouth, reports the Meeting of Creditors was held last month (February), and the bankruptcy case is progressing. The deadline for filing claims in the Bankruptcy is May 20th, 2013. 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. The U.S. Department of Agriculture is processing the payments for producers who held warehouse receipts for stored grain. It is anticipated that checks will be mailed by April 1st, 2013.

The Iowa Department of Agriculture is processing claims for producers who sold grain to G & R for cash or who sold grain on an unsigned contract and were not paid. The first batch of claims has been processed. Confirmations have been sent to 19 claimants. Once the paperwork has been
returned by the claimants and processed, checks will be issued within 2 – 3 weeks thereafter.

The Trustee has been unable to obtain a bid for the contracts for future delivery of grain. According to the Bankruptcy Code, if the contracts are not accepted or rejected by March 2, 2013, they are deemed rejected. The Trustee is taking no action to extend this date, so in her opinion, the contracts are rejected effective March 5, 2013.

The Trustee is accepting bids for the entire facility and all equipment as a package deal. If an
acceptable bid is obtained, the Court’s approval will be sought. If not, then the Trustee will look at
scheduling an auction. Letters have been sent out to collect all accounts due G & R. The Trustee
is still seeking recovery of the proceeds for the grain delivered in December.

G & R Feed and Grain filed for Chapter 7 bankruptcy on January 1st, 2013, leaving some 60 families or businesses, most of whom are located in Shelby County, to taked stock of their losses. Court records show the company’s debts range from$1-million and $10-million, while its assets were up to $50,000.