Nebraska grain dealer that temporarily lost license declares bankruptcy

An Omaha grain dealer that had its Nebraska license temporarily suspended after it failed to pay producers last month has filed for bankruptcy protection.

Hansen-Mueller Co. said in a news release Monday afternoon that it is pursuing a financial restructuring and has applied for Chapter 11 bankruptcy protection. Chapter 11 is a type of bankruptcy that allows companies to continue operating while they work to restructure debt.

In the news release the company said it will continue to operate while seeking a buyer to take over all or substantially all of its assets and continue to run the company.

“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,” Josh Hansen, Hansen-Mueller’s CEO, said in the release. “We believe this path will maximize the value of the Company’s assets for the benefit of our creditors, employees, and all stakeholders.”

The Nebraska Public Service Commission suspended the company’s grain dealer license in October after receiving numerous complaints from farmers that they weren’t being paid. It was eventually revealed that Hansen-Mueller owed more than $2 million to about three dozen farmers.

Earlier this month, the PSC reinstated Hansen-Mueller’s license after the company made good on the payments to the Nebraska farmers.

Hansen-Mueller also is accused of not paying farmers in Texas, and it is under investigation in both Minnesota and North Dakota.

According to its bankruptcy filing, Hansen-Mueller owes more than $20 million to its 20 largest unsecured creditors. Included among those are four Nebraska businesses collectively owed nearly $3 million. Unsecured creditors are ones who do not hold any collateral.

The company said in its filing that it has between $100 million and $500 million in assets and the same range of liabilities.