A major Minnesota-based organic grain processor’s bankruptcy reorganization filing earlier this month has shocked farmer-suppliers from Canada to the U.S. South, and left them wondering who will get paid and who will pick up the pieces, AgWeek reported. The Minnesota Department of Agriculture held an online meeting this week with creditors and others to describe how Pipeline Foods LLC’s federal bankruptcy in Delaware might mesh with state laws for payment for grain. Minnesota Agriculture Commissioner Thom Peterson assured that the department saw the bankruptcy as a “serious issue that we’re looking at all angles on.” Nick Milanowski, supervisor for the department’s fruit, vegetable and grain programs, urged people to file now against the company’s $500,000 bond, which might partially compensate producers. Milanowski and Minnesota Assistant Attorney General Oliver Larson told farmers they should also consider filing claims against the bond, and in the federal bankruptcy, but noted that unsecured creditors get paid last.Unfortunately, money through either process is unlikely to make producers whole, and could take months or years. Pipeline Foods LLC was formed in 2017. It filed for chapter 11 reorganization in Delaware, where it was incorporated. Pipeline estimated funds “will be available for distribution to unsecured creditors.” They estimated 200 to 999 creditors. They estimated $100 million to $500 million of both assets and debts. The bankruptcy filing lists just 20 top creditors the company estimates it owes a total of $20.7 million. In addition to U.S. creditors, it also has companies in Dubai, India and China.
