Monday, June 13, 2022, 5:27 pm
News Flash Archive
This afternoon, bankrupt Express Grain and UMB Bank filed a motion informing the court that UMB Bank intends to assign its purchase rights to FSB Companies and Thoroughbred Agrifuel Holdings, LLC for the assets that UMB Bank purchased at the February 25, 2022 bankruptcy auction.
The Taxpayers Channel first reported last Friday the rumors that UMB Bank had indeed found a purchaser for the EG assets. We reported the possibility that one purchaser might be Frank S. Brumfield, who operates FSB Companies out of Chicago. See our reporting here: Rumors fly about sale of bankrupt Express Grain assets by UMB Bank
Both Frank Brumfield and Thoroughbred bid for the assets at the auction -- Throroughbred for the oil mill in Greenwood, and Brumfield for the rest of the assets in Sidon and Minter City. They ultimately made a joint bid totaling $20.5 million, but were outbid by UMB Bank for $25 million.
Today's motion for court consideration may be seen here: Express Grain and UMB Bank Motion to Clarify Order to Sell
A large portion of the motion addresses legal details revolving around the fact that some of the Greenwood oil mill property lies on 16th Section land, which has a lease that expires in 2046.
The motion reads in part:
UMB has reached an agreement in principle to assign its purchase rights under the UMB Credit Bid and Sale Order. UMB proposes to assign its purchase rights to Thoroughbred AgriFuel Holdings LLC ("Thoroughbred") and FSB Companies (or an affiliate thereof) ("FSB", together with Thoroughbred, the "Assignees"). Both Thoroughbred and FSB participated in the Auction .... Collectively, they were the next highest bid after the UMB Credit Bid. Thoroughbred and FSP [sic] are not insiders of the Debtor and have no affiliation with the Debtor, CR3, UMB or any other interested party relating to the Auction or the Purchased Assets. Both
have acted at all times in good faith, at arms' length, and without collusion with any other party.
Debtor [Express Grain] has no objection to the assignment of UMB's purchase rights to the Assignees. It is anticipated the assignment will be contemporaneous with the closing of the Purchased Assets.
FSB Companies will be permitted to substitute one of its subsidiaries to receive title to its part of the assets. We reported (see above link) that Frank Brumfield registered a new Mississippi LLC called "Delta Grain Company" on May 27, 2022.
It appears, from the request made by EG and UMB Bank, that they intend to finish up this business before June 30th, the current deadline for finalizing the close of the purchase. They are requesting a hearing to be held on June 23rd.
Click on these links for information regarding Mr. Brumfield's company FSB Companies and Thoroughbred Agrifuel Holdings, LLC.
To read all our coverage of the Express Grain bankruptcy case, see here: Index of Express Grain articles
John Pittman Hey
The Taxpayers Channel
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