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Turner Grain Executive Claims $5.5M in Debts, $2M in Assets

3 min read

Dale Bartlett of Marvell, president of Turner Grain Merchandising Inc. of Brinkley, on Monday filed more details in his bankruptcy case, listing about $5.5 million in debts and $2 million in assets.

Bartlett made an initial Chapter 12 filing on Sept. 5 in U.S. Bankruptcy Court.

More: View the initial original filing here (PDF). View the more detailed filing here (PDF).

The filing gives an overview of Bartlett’s personal finances, itemizing his personal and real property and unsecured creditors.

All the creditors are holding unsecured claims. Kennedy Rice Dryers LLC of Mer Rouge, Louisiana, holds the biggest claim: $2.4 million. Other large debts include Helena National Bank, $1.1 million; RaboBank of St. Louis, $1 million; and Planters Rice Mill LLC of Brinkley, $699,000.

The filing lists other creditors with claim amounts that are “unknown.” Those creditors include firms that have filed legal actions surrounding Turner Grain: Zero Grade Farms of England; Lance Gray of High Roads Farms of Helena; and Bruce Oakley Inc. of North Little Rock, which filed an interpleader in the case on Aug. 19.

The filing also shows that, in the months before word of Turner’s financial troubles began circulating, Bartlett transferred his interest in $844,000 worth of real property to his wife, Elizabeth Bartlett. The filing shows the transfer of real property, which excludes the couple’s $187,500 home on 5 acres, taking place July 28 and Aug. 11.

Bartlett also says in the filing that he sold “all stock” in Turner Grain for $5,000 and transferred farm equipment “with no liens” to Jason Coleman, Turner’s vice president, in February. Bartlett says he received the cash but not the farm equipment.

Elsewhere in the filing, Bartlett lists year-to-date 2013 farming income at $6,250. In 2012, he listed farm income of $131,016.

Bartlett’s bankruptcy is the first filed by an executive involved with Turner Grain. Chapter 12 bankruptcy is designated for “family farmers” or “family fishermen” with a regular annual income. It allows debtors propose a repayment plan and make installments to creditors over three to five years.

Lawsuits

RaboBank’s subsidiary, Rabo AgriFinance Inc., filed its lawsuit against Turner Grain, Bartlett and other Turner executives on Sept. 10

It claims it entered into a security agreement with Turner Grain on Jan. 2, and is now entitled to “the foreclosure of its liens and security interests in the grain currently held by Turner Grain,” in addition to other assets and collateral.

Rabo requested that a receiver be appointed to take over what’s left of Turner Grain. Last month, U.S. District Court Judge James M. Moody Jr. named bankruptcy attorney Kevin Keech and his North Little Rock law firm to the post.

As receiver, Keech has the power to liquidate assets, pursue claims and file for bankruptcy.

Gray is part of a group of farmers from Monroe, Phillips and Lee counties who sued Turner Grain, its executives and related entities on Aug. 20 saying they haven’t been paid for grains they sold to the Brinkley company. Another group of farmers filed a separate lawsuit in Lonoke County. A group of Mississippi farmers filed suit (PDF) on Thursday.

Sources have told Arkansas Business that the company could file for bankruptcy protection, leaving the farmers with whom it does business worried about breached contracts and possible losses.

State agriculture officials have put the money at stake between $20 million and $50 million.

Incorporated in 2002, Turner acted as a middleman between the farmer and the client who wants to buy the grain. It would buy the farmer’s supply and hold it until a customer wanted to purchase it.

Officials from Turner Grain have not answered repeated requests for interviews. The company had not filed for bankruptcy protection as of Tuesday.

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