Hansen-Mueller Freeze Bid     10/16 12:48

   Hansen-Mueller Funds Targeted in Sureties' Federal Appeal Fight

   Surety companies asked a Nebraska bankruptcy court to halt Hansen-Mueller 
cash distributions, arguing an appeal over $7.9 million in grain proceeds could 
be undermined.

Todd Neeley
DTN Environmental Editor

   LINCOLN, Neb. (DTN) -- Bonding companies asked a federal bankruptcy court in 
Nebraska to prevent any distribution of cash assets from the Hansen-Mueller Co. 
estate in the Chapter 11 case until the bond companies' appeal to a previous 
court ruling is resolved, according to a motion filed in the U.S. Bankruptcy 
Court of Nebraska on Friday.

   Harco National Insurance Company and International Fidelity Insurance 
Company filed an appeal with the U.S. District Court for the District of 
Nebraska, asking the court to review the bankruptcy court's ruling that the 
bonding companies have no right to grain proceeds in the case. The companies 
claimed $7.9 million in proceeds belonged to them for bonding Hansen-Mueller.

   As part of the Chapter 11 case, the bankruptcy court must authorize 
expenditures on behalf of the Hansen-Mueller estate.

   The bond companies said funds should not be distributed while they wait for 
the result of their appeal.

   "The surety has taken the position that, for multiple reasons previously 
articulated, it is entitled to receive some or all of the cash currently held 
by the debtor," the companies said on Friday.

   "That appeal would be moot and the surety would face irreparable harm if the 
court distributes the cash being held by the debtor while the surety's appeal 
is pending."

   The surety companies have argued throughout the court proceeding that they 
are effectively stepping into the shoes of grain producers who the companies 
have paid under bonds.

   "The public has an interest in funds being distributed to those whose labor 
and material generated those funds in the first place," they said in their 
motion.

   "As the only party who is paying the grain producers, the surety stands in 
their shoes with respect to the receipt of these funds."

   Their motion asks the court to stay any final judgment or order authorizing 
cash distributions and to continue to postpone proceedings related to cash 
distributions.

   A final hearing is scheduled for Oct. 20, 2026, at which the court could 
authorize cash distributions from Hansen-Mueller.

   It's difficult to say how long the case could be delayed if the bankruptcy 
court grants the motion.

   Appeals that are filed from a bankruptcy court to a U.S. District Court can 
take months to resolve. The surety companies argue in their motion that unless 
cash distributions are stopped for now, cash could be paid out before a 
district court would rule on the appeal.

   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 were 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.

   Read more on DTN:

   "Hansen-Mueller Sureties File Appeal," 
https://www.dtnpf.com/agriculture/web/ag/news/business-inputs/article/2026/10/14
/bonding-companies-appeal-hansen-11-7

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

   Follow him on social platform X @DTNeeley




(c) Copyright 2026 DTN, LLC. All rights reserved.