A Kanawha company that specializes in organic and non-genetically modified soybeans filed this week for bankruptcy, about three weeks after the state suspended its grain licenses.
Global Processing Inc. estimates that it owes more than 150 people, banks and others a total of between $10 million and $50 million, according to its bankruptcy petition that was filed in federal court on Monday. It also estimated it has assets within that dollar range.
The Iowa Department of Agriculture and Land Stewardship announced it had suspended the company’s grain dealer and warehouse licenses on Oct. 7 because Global Processing did not “have sufficient funds to cover producer grain checks.”
Global has not responded to a request for comment.
In January 2022, the company was ordered by a federal judge to pay nearly $1.6 million to another company for more than 1,000 metric tons of organic soybeans.
Global sells organic and non-GMO soybeans in bulk or bags and also processes the grain into soybean oil and soy protein. It has locations in Iowa, Illinois, Minnesota and Nebraska.
The company faces two recent lawsuits that were filed in state district court after the state suspended its licenses.
Earlier this month an Oskaloosa company, PURIS, sued Global Processing for failing to pay for organic soybeans the company imported this summer from Argentina for Global, court records show. PURIS alleges Global received and paid for about half of the 500 metric tons of imported grain but reneged on the second half, valued at about $400,000.
F.W. Cobs Company, in Vermont, sued Global Processing last week for failing to pay for about $155,000 worth of organic soybeans the company had delivered to Global this summer, according to court records. The company further seeks about $130,000 for soybeans Global had agreed to buy but then declined to take possession of.
In Iowa, farmers are protected by a state indemnity fund for up to $300,000 worth of losses caused by licensed grain dealers who don’t pay them. IDALS said affected farmers have about four months to file a claim with the state.
Global provided a list of people, banks, companies and other entities to which it owes money as part of its recent bankruptcy petition. That list contains at least seven farmers or farm companies that produce soybeans in Iowa, Illinois, Indiana, Nebraska and Minnesota, according to an Iowa Capital Dispatch review.
Don McDowell, an IDALS spokesperson, said the state has identified 61 producers who might be potential claimants for indemnity fund relief, although none had made a claim as of Wednesday. He said out-of-state farmers are eligible.
Global Processing was administratively dissolved by the state in late September after the company failed to file a biennial report, which is required by state law. Its shareholders intend to reorganize the company and reinstate it, according to court filings associated with the bankruptcy proceedings.
See the bankruptcy petition here:Global Processing Bankruptcy
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