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United States Bankruptcy Court for the Northern District of Mississippi
December 14, 2021, Filed
CASE NO. 21-11832-SDM, CHAPTER 11
MEMORANDUM OPINION AND ORDER FINDING THE INDIVIDUAL GRAIN CONTRACTS ARE SEVERABLE AND ARE NOT CONTRACTS FOR FINANCIAL ACCOMMODATIONS UNDER 11 U.S.C. § 365
This matter came on for hearing on November 12, 2021 on the request of the Debtor, Express Grain Terminals, LLC ("Express Grain"). On November 12, 2021, Express Grain requested a brief status conference to address procedural issues surrounding the status of executory contracts to be accepted or rejected pursuant to the Court's prior Order Establishing General Procedures (Dkt. #177). During the status conference, the parties raised two issues surrounding the executory contracts: first, whether the Master Trade Agreement ("MTA") was the single executory contract to be assumed or rejected or whether each individual executory contract under the MTA are those to be assumed or rejected; and second, whether such executory contract(s) is a "financial accommodation" under 11 U.S.C. § 365(c)(2)1.
On November 15, 2021, the Court [*2] held a hearing on the Motions to Assume Lease or Executory Contracts, during which the Court instructed the parties to submit simultaneous briefs concerning one or both ancillary legal issues. The Court entered an Order Setting Deadlines and Establishing Briefing Schedule for Ancillary Legal Issues (Dkt. #1146) on the same day. The deadline to submit briefs concerning these two issues was November 22, 2021. In total, four briefs were submitted to the Court by the following parties: Farm Group I2 (Dkt. #1177); the Farm Group (Dkt. #1179); Express Grain (Dkt. #1181); and UMB Bank (Dkt. #1182). The Court will address the parties' arguments in more detail below.
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2021 Bankr. LEXIS 3415 *; 2021 WL 5918376
IN RE: EXPRESS GRAIN TERMINALS, LLC, DEBTOR
grain, contracts, parties, Farm, accommodations, executory contract, farmers, argues, deadline, license agreement, financing, hogs, settlement agreement, executory, Motions, default, Broadcasting, entities, intent of a party, subject matter, transactions, unambiguous, Terminals, promises
Bankruptcy Law, Administrative Powers, Executory Contracts & Unexpired Leases, Rejections, Business & Corporate Compliance, Contracts Law, Types of Contracts, Divisible Contracts, Contracts Law, Contract Interpretation, Severability, Contract Conditions & Provisions, Severability Clauses, Powers to Assume & Reject, Unexpired Leases, Assignments, Reorganizations, Debtors in Possession, Powers & Rights, Procedural Matters, Real Property Law, Bankruptcy, Leases, Unassumable Contracts