Wednesday, June 27, 2007
State takes over Lamar Grain and Feed, seeks repayment of debts
According to a news release issued today by the Attorney General's office, the state has taken over Lamar Grain and Feed:
Attorney General Jay Nixon today took legal action for the Missouri Department of Agriculture to be appointed trustee and receiver of Lamar Grain and Feed, after an investigation revealed that the defunct business had grain payables in excess of $100,000 when it closed on May 31. The business was located at 1203 Perry Street in Lamar.
Nixon obtained an order from the Barton County Circuit Court for the state to be appointed trustee and receiver for the sole purpose of liquidating grain-related assets, determining the validity of grain-related claims, and disbursing, after administrative hearing, grain-related assets and proceeds for the benefit of claimants with valid claims within the parameters of the Missouri Grain Dealer Law.
State law allows the Attorney General to seek a court order for the Department of Agriculture to be appointed as receiver to operate or liquidate grain facilities upon evidence that the grain dealer is insolvent or unable to satisfy to claims of all sellers. Nixon’s petition cites significant evidence that Lamar Grain still has grain payables of more than $100,000, which the defendants, including former president Ron K. Ellis and vice president Jerod S. Ellis, have failed to pay.
Today’s court order authorizes the department to take over both business and personal accounts of the defendants to accurately determine the extent of all grain-related obligations incurred by Lamar Grain, the status of those obligations and Lamar Grain’s resources to pay off the outstanding obligations. The department is also authorized to redeliver or sell dealer-owned grain and hold the proceeds in escrow. The department will also determine the validity of all claims and disburse all grain-related assets and proceeds that are to be placed in the escrow account.