Hansen-Mueller Co - Case Summary

Business Description Headquartered in Omaha, Nebraska, Hansen-Mueller Co. ("HM" or the "Company"), along with its Debtor affiliates, operates a diversified a...

Business Description

Headquartered in Omaha, Nebraska, Hansen-Mueller Co. ("HM" or the "Company"), along with its Debtor affiliates, operates a diversified agribusiness platform as a nationwide merchandiser and processor of grain. The Company employs approximately 120 individuals across its locations in states including Nebraska, Iowa, Missouri, Kansas, and Ohio.

HM's business is organized into four complementary units: Oat Trading, Wheat Merchandising, Cross-Country Trading, and a Houston-based port terminal joint venture.

The Company's corporate structure includes several affiliates with distinct roles:

HM Trucking: A transportation company primarily engaged in hauling grain.
KC MO Owner, Sioux City Owner, and KC KS Owner: Entities that own or lease real estate assets, which are then leased to HM for its operations.

Corporate History

HM was founded in 1979 by Jack Hansen and has operated for 45 years, adapting its business model to changing market dynamics. The Company strategically established its core business around oats and other niche crops in the Midwest, expanding through a focus on international trade, servicing independent mills, and vertical integration into processing.

Over its history, HM has grown its operational footprint to 44 states and 24 countries, building a reputation for providing personalized services to buyers and sellers of grain and feed.
On March 26, 2021, the Company filed its Amended and Restated Articles of Incorporation with the Nebraska Secretary of State.

Operations Overview

HM's operations are supported by a network of physical assets and a sophisticated logistics platform. The Company operates nine elevators across the Midwest with a total grain storage capacity of 30 million bushels, as well as four port terminals located in Duluth, Minnesota; Houston, Texas; Superior, Wisconsin; and Toledo, Ohio.

To support its national reach, HM leases a private fleet of 387 railcars and utilizes all major transportation modes—truck, rail, barge, vessel, and container—to optimize import and export flows.

Business Units

Oat Trading: HM is one of the largest traders of oats in the market, accounting for 30% to 70% of the futures market and handling approximately 18 million of the roughly 60 million bushels produced annually. This unit is supported by facilities in Ohio, North Dakota, Minnesota, and Wisconsin.
- The Company also owns and operates an oats processing facility in Toledo, Ohio, that produces pet food and animal feeds.
Wheat Merchandising: The Company handles over 77 million bushels of wheat annually, primarily through its facilities along the Interstate 29 corridor. Major clients include independent mills and large domestic and multinational grain trading groups.
Cross-Country Trading: A dedicated trading team focuses on opportunistic trades and back-hauls for corn, soy, milo, and feed throughout the United States, leveraging niche market intelligence and regional arbitrage opportunities. This unit operates from trading offices in Kansas, Ohio, Louisiana, Alabama, Missouri, and Nebraska.
Houston Joint Venture: Through its JV Owner affiliate, HM holds an interest in a joint venture with Nautilus International Holding Corp. to upgrade a port elevator in Houston.
- The project has been awarded a $25.4 million federal grant to fund upgrades including new conveyance systems, shipping bins, and dust systems, with construction estimated to be completed in November 2026.

Prepetition Obligations

As of November 14, 2025, the Company's primary funded debt obligation consists of approximately $50.9 million outstanding under a prepetition credit facility, plus a $2.6 million deficiency fee.

BMO Credit Facility

On March 30, 2023, HM, as borrower, and its affiliates, as guarantors, entered into a Credit and Security Agreement with BMO Harris Bank N.A. as administrative agent. The facility includes a Revolving Loan and a Term Loan.
- As of the petition date, the outstanding principal balance was composed of approximately $32 million under the Revolving Loan and $18.9 million under the Term Loan.
The obligations are secured by first-priority liens on substantially all of the Debtors' personal and real property assets, perfected via UCC-1 financing statements and recorded mortgages in states including Iowa, Kansas, Missouri, Minnesota, Ohio, and Wisconsin.
The credit agreement was amended 14 times, with the Fourteenth Amendment, dated October 9, 2025, also serving as a Forbearance Agreement.

Other Obligations

As of the filing, HM holds approximately $5.3 million in a bank account with the Agent, which is considered cash collateral, subject to outstanding checks and other obligations.
The Company reports approximately $30,000 in existing utility charges and incurs an estimated $100,000 in additional utility expenses monthly.

Events Leading to Bankruptcy

The Company’s financial distress stems from a series of significant operational and financial setbacks over the past several years, which depleted working capital. These challenges include:

A $15 million loss from an unsuccessful conversion of a pasta plant in Fremont, Nebraska, which was sold in 2022.
An $11 million loss related to the development and implementation of a proprietary trading software platform.
A $10 million loss following the unsuccessful integration of eight elevators acquired in 2016-2017.
Arbitration losses totaling approximately $3.5 million.
External pressures, including presidential tariffs, which negatively impacted the Company's export business.

Prepetition Sale Process and License Suspension

In September, recognizing the need for strategic alternatives and a desire from ownership to exit the business, the Company retained investment banker Ascendant Consulting Partners, LLC to market its assets. The process generated significant interest, with Ascendant contacting 37 potential bidders and 33 parties entering into non-disclosure agreements to access a data room.

The Company's financial position deteriorated rapidly after the Nebraska Public Service Commission ("PSC") temporarily suspended its grain trading license on October 24, 2025.
The PSC's action triggered a "domino effect," leading to numerous inquiries from other state regulatory agencies and creditors, which consumed significant management resources and distracted from the core business and ongoing sale process.

Chapter 11 Filing and Go-Forward Strategy

The escalating regulatory and creditor pressures necessitated the Chapter 11 filing to provide the Company with "breathing room" to conduct an orderly sale process and maximize value for stakeholders. The Company's go-forward strategy is centered on a swift and efficient 363 sale of its assets.

To fund the cases and the sale process, the Company has negotiated the consensual use of its cash collateral with its prepetition lender, BMO. The agreement includes a carveout for professional fees and grants investigative rights to an official committee of unsecured creditors.
The Company has reduced its workforce to a "bare minimum" of 120 employees needed to maintain operations through the sale process.
HM intends to continue the marketing process in Chapter 11, seeking to sell its assets free and clear of liens, claims, and encumbrances. The Company plans to seek approval of bidding procedures and may enter into one or more stalking horse purchase agreements to facilitate a value-maximizing auction.