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Receiver Says Mixed Ownerships Complicating Turner Grain Case

2 min read

It looks like sorting out the financial mess at Turner Grain Merchandising Inc. of Brinkley will be a bigger job than originally thought.

Bankruptcy attorney Kevin Keech of North Little Rock, who has been acting as receiver of the grain distribution company since September, has asked U.S. District Judge James M. Moody Jr. for more power to investigate at least eight of Turner’s related companies. Those include Agri-Petroleum Sales LLC, Brinkley Truck Brokerage LLC and Ivory Rice LLC.

Keech said in a Nov. 12 filing that he hasn’t been able to determine the precise relationship between Turner and the other firms even though the owners of Turner Grain also operate the other companies.

“The Receiver has not yet completed such investigation, but based on the information currently available to him, it appears Turner Grain and the Related Entities shared or exchanged funds and other assets and/or operated as alter egos of each other,” Keech said in the filing.

Keech said it wasn’t uncommon for several of the related entities to be involved in the same contract transaction.

For example, a seller would deliver its crop to Ivory Rice, which would dry the grain. Turner Grain would then negotiate a contract between a seller and buyer and Brinkley Truck would deliver the grain.

Keech said he believes that “there was a substantial flow of funds between Turner Grain” and the related companies. He also said the related entities and Turner Grain “are inextricably intertwined.”

Keech said he believes some of the related entities might have some of Turner’s assets. As you remember, Turner filed for Chapter 11 bankruptcy protection in October and reported $24.8 million in debts and $13.8 million in assets.

Expanded receivership powers would allow Keech to do more digging and ensure that all of Turner’s assets will be used for investors and creditors.

Judge Moody hadn’t ruled on the motion as of Thursday.

Meanwhile, in Turner’s bankruptcy case, Keech filed a lawsuit last week against Helena National Bank in an attempt to recover approximately $315,000 of Turner Grain’s money.

Keech said in the complaint that the money is sitting in a checking account at the Phillips County bank.

Keech said he has tried to get his hands on the money, but the bank hasn’t handed it over. He filed the lawsuit to force the bank to release the money.

A Helena bank official didn’t immediately return a call for comment Thursday.

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