Global Processing, a non-GMO soybean processor based in Iowa,has filed for bankruptcy, saying it owes at least 100 creditors $10 million.
This is the second grain dealer in Iowa to run into financial insolvency this year. In August,B & B Farm Store, Inc.of Jesup, Iowa,had its license suspendedand Farmers State Bank filed a petition seeking to foreclose.
According toreports,Iowa Department of Agriculturesuspended the warehouse and grain dealer licenses of Global Processing Inc. of Kanawha earlier this month, saying the company failed to "have sufficient funds to cover producer grain checks" as well as to file monthly financial statements as Iowa law requires.
The loss of state licenses means Global Processing is no longer able to accept grain in Iowa.
Global Processing said in its bankruptcy filing Monday that it owes between 100 and 199 creditors from $10 million to $50 million. The company estimated it has the same amount of assets as it has liabilities.
The state agriculture department said it did not know how many farmers might be caught in the company's financial troubles. It urged farmers to file claims through a state grain indemnity fund, which may reimburse growers for 90% of their losses up to $300,000.
According to thecompany’s website, in addition to Iowa, Global Processing has locations in Haigler and Lexington, Nebraska, and Monticello, Illinois.
Global Processing’s focus had been on marketing identity-preserved non-GMO food-grade soybeans. Its Iowa facility, which is also its headquarters, cleaned, bagged and shipped soybeans within the U.S. and to Asia.
