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Turner Grain Close to Filing $25M Bankruptcy

2 min read

Turner Grain Merchandising Inc. of Brinkley appears close to filing for Chapter 11 bankruptcy protection, according to a court filing made last week by the company’s receiver.

U.S. District Court Judge James M. Moody Jr. appointed bankruptcy attorney Kevin Keech of North Little Rock as Turner’s receiver last month. Keech filed a draft of the Turner bankruptcy on Oct. 14, showing the company with $24.8 million in debts and $13.8 million in assets. 

The final amount of debt could be larger, because some creditors’ claims are listed as “unknown” or zero.

Turner, which operates as a middleman for commodities, had not filed for bankruptcy protection as of 3:30 p.m. Monday, according to a search of U.S. Bankruptcy Court records in Arkansas. 

Keech wasn’t immediately available for comment Monday afternoon.

Turner’s draft lists $23.8 million of creditors holding unsecured claims. Some of the larger claims include: 

  • Southern Rice & Cotton LLC of Harrisburg, $3.228 million.
  • Zero Grade Farms of Blytheville, $2.293 million.
  • Kennedy Rice Dryers LLC of Mer Rouge, Louisiana, $2.285 million.
  • Delta Grain Marketing LLC of Jonesboro, $1.814 million.
  • K & K Farm Services of Carlisle, $1.502 million.
  • Edward Schafer & Sons of Lonoke, $1.383 million.
  • Poinsett Rice & Grain Inc. of Waldenburg, $1.326 million.
  • David and Lalain Wilkison Farm of Brinkley, $1.147 million.
  • Melvin Farms Partnership of Hunter, $1.06 million. 

Among its assets, Turner included $3 million it says it is owed for miscellaneous billing errors over the last two years, including overpayments to producers and missed freight charges. 

In the draft, Turner claimed 2013 revenue of $277.9 million, up 24 percent from 2012. Turner claimed revenue of $235.3 million so far this year. 

Dale Bartlett of Marvell, president of Turner Grain, filed for bankruptcy protection last month. He listed about $5.5 million in debts and $2 million in assets.

Keech became the receiver of Turner Grain following a request by Rabo Agrifinance Inc. of St. Louis, which last month sued Turner Grain and its executives for breach of contract.

Rabo claimed Turner owes it nearly $1 million and asked that a receiver be appointed because of Turner Grain’s well-publicized collapse.

Turner and its executives, Jason Coleman and Bartlett, “are currently perceived to be insolvent and are defaulting on various agreements with multiple farmers, operators, shippers, dealers, and brokers across many states,” according to Rabo’s Sept. 11 motion for a receiver.

Turner Grain is facing seven lawsuits over allegations of breach of contract.

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