$7.9M Claim Heads to Appeal   10/14 11:55

   Bonding Companies Appeal Hansen-Mueller Chapter 11 Ruling on $7.9M Grain 
Proceeds

   Two surety companies appealed a bankruptcy court ruling denying their $7.9 
million grain-proceeds claim in Hansen-Mueller's Chapter 11 bankruptcy case.

Todd Neeley
DTN Environmental Editor

   LINCOLN, Neb. (DTN) -- Two bonding companies that lost their bid to claim 
$7.9 million in grain proceeds in Hansen-Mueller Co.'s Chapter 11 bankruptcy 
have filed an appeal with a federal court in Nebraska.

   The U.S. Bankruptcy Court of Nebraska ruled at the end of September that 
Harco National Insurance Company and International Fidelity Insurance Company 
had no rights to proceeds, after the companies argued the proceeds should have 
been used to reimburse bond payments to farmers.

   The surety companies also made the case that the general indemnity agreement 
with Hansen-Mueller created a trust fund for those proceeds.

   The bonding companies filed a notice of appeal with the U.S. District Court 
of Nebraska Tuesday.

   Bankruptcy court decisions often are appealed to federal district courts, as 
bankruptcy courts were established as units of district courts.

   In the filing for an appeal, the surety companies opted not to have their 
appeal heard by the Bankruptcy Appellate Panel. Appealing to the district court 
essentially preserves their right to later appeal to a federal appeals court 
and even the U.S. Supreme Court.

   If the district court was to reverse the bankruptcy court's decision, it 
could affect the amount of priority claims against Hansen-Mueller's assets and 
could influence recoveries for other creditor groups.

   The U.S. Bankruptcy Court of Nebraska also recently granted Hansen-Mueller's 
request for an extension of the exclusivity deadline to file a Chapter 11 plan 
with the court to Jan. 14, 2027.

   Extending that deadline prevents creditors and other parties from filing 
competing bankruptcy plans. It is not yet clear, however, when Hansen-Mueller 
might file a Chapter 11 plan.

   The bonding companies had argued that they stand in the place of farmers who 
have outstanding claims in the bankruptcy case.

   For Hansen-Mueller's financier BMO Bank, the bankruptcy court's ruling 
against Harco National Insurance Company and International Fidelity Insurance 
Company freed up about $3.9 million BMO held in a reserve account. BMO loaned 
more than $50 million to the Omaha-based company.

   Hansen-Mueller told the court in recent filings that it is making progress 
toward reorganizing its debts or liquidation. In all, the company told the 
court it had generated about $24.2 million from assets sales.

   Read more on DTN:

   "Hansen-Mueller Wins $7.9M Bond Fight," 
https://www.dtnpf.com/agriculture/web/ag/news/business-inputs/article/2026/09/29
/bankruptcy-court-bond-companies

   Todd Neeley can be reached at todd.neeley@dtn.com

   Follow him on social platform X @DTNeeley




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