OMAHA, Neb. — Hansen-Mueller Co., an Omaha-based grain trading and merchandising company, filed for Chapter 11 bankruptcy protection on Monday in the U.S. Bankruptcy Court in Nebraska. The filing comes amid reports emerging over the past few weeks that farmers across several states have not received payment for grain deliveries.
According to court documents, the company estimates it has between 1,000 and 5,000 creditors and lists liabilities and assets falling between $100 million and $500 million.
In a news release issued Monday, Hansen-Mueller stated it is pursuing a “strategic financial restructuring” to address its challenges. The company intends to execute a court-supervised sale of substantially all of its assets under Section 363 of the Bankruptcy Code.
“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,” CEO Josh Hansen said in a statement. “We believe this path will maximize the value of the company’s assets for the benefit of our creditors, employees, and all stakeholders.”
Millions Owed to Unsecured Creditors
Along with the petition, Hansen-Mueller filed a list of its 20 largest unsecured creditors. Unsecured creditors—entities owed money without collateral backing the debt—face a higher risk of non-payment in bankruptcy proceedings.
Topping the list is Viterra Canada Inc., which is owed approximately $4.7 million. This is followed closely by agribusiness giant Cargill, owed $2.6 million.
The filing details significant debts owed to cooperatives and businesses across the Midwest and South, including:
- Agmark LLC (Beloit, KS): $2.1 million
- Comark (Enid, OK): $1.3 million
- ShawNuff (Monroe, LA): $1.2 million
- Alliance Ag and Grain (Spearville, KS): ~$1 million
- Chisholm Trail Terminal (Medford, OK): ~$1 million
- Producer Ag LLC (Lincoln, NE): $932,796
- Farmers Coop Grain and Supply (Trenton, NE): $813,422
The list of top 20 unsecured creditors also includes various entities ranging from family farms to regional cooperatives in Kansas, Louisiana, Mississippi, Arkansas, and Minnesota.
Beyond the top 20, the bankruptcy filing includes an additional 89 pages of creditors, naming individual farms, large agribusinesses such as Archer Daniels Midland, and various state departments of revenue.
Operations to Continue
Despite the filing, Hansen-Mueller stated it intends to continue managing its operations in the “ordinary course” as a debtor in possession. The company said it plans to meet obligations to employees and key suppliers for goods and services provided after the filing date.
“We are working closely with legal and financial advisors to navigate this process efficiently,” the company stated, noting hopes to move through the sale and Chapter 11 process “as quickly as possible.”
