Hansen-Mueller Co. is a nationwide grain merchandiser and processor with nine elevators across five states. It also operates port terminals in Minnesota, Texas, Wisconsin and Ohio.
Earlier this week, the Omaha-Nebraska based company filed for Chapter 11 bankruptcy.
In October, it was reported more than three dozen Nebraska farmers were owed a total of $2 million. At that time, Hansen-Mueller’s grain dealer license was suspended by the Nebraska Public Service Commission. After paying farmers $2.1 million, the Commission reinstated the company’s license on Nov. 4 and did not issue any civil penalties. The bankruptcy filing came two weeks later.
“After careful consideration of all available strategic alternatives, the Board of Directors determined that a Court-supervised process is the most effective and efficient way to achieve an orderly sale of our assets,” said Josh Hansen, Chief Executive Officer of Hansen-Mueller Co. in the company press release. “We believe this path will maximize the value of the Company’s assets for the benefit of our creditors, employees, and all stakeholders.”
In its filing, the list of 20 largest creditors includes several grain commodity companies, coops, etc from Louisiana, Mississippi, Kansas, Arkansas, Nebraska and more. The company says it has assets ranging from $100 million to $500 million with estimated liabilities in the same range.
You can read the company’s full statement here.
Minnesota and Texas are also investigating the company not paying farmers.
State departments of ag are issuing advisories to farmers who have conducted business with Hansen-Mueller to file any claims as soon as possible. Each state has a unique set of provisions in the individual state statutes, so it’s important to know what your state’s may or may not provide.
Related Article: When There Is A Failure: 8 Provisions of Grain Dealer State Statutes To Know
For example, in Minnesota its indemnity fund aims to protect farmers who have unpaid grain sales when grain buyers are insolvent.
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