Central Management GP Sues Certain Financial Institutions To Determine Lien Rights and Ownership in Debtor’s Property.
January 21, 2021, Northern District of Texas – Everett Allen Lash, Yvonnew Kay Lash, EAL, LLC, YKL, LLC, and Debtor Central Management GP (CM), an Illinois general partnership, all being the Plaintiffs, sued some financial institutions and firms to determine lien rights and ownership in the Debtor’s property. CM also seeks judgment on quantum meriut. The Plaintiffs also objected to the various proofs of claims filed by the Defendants.
The Defendants, in this case, include – CHS Capital, LLC, Midland States Bank (MSB), Dunlap & Seeger, P.A. (Dunlap), Lena Farms Partnership, and Lena Farms Partnership, LLC
The Plaintiffs argued that Defendant Dunlap holds in its possession certain funds realized from the sale of the crops produced by CM grown on the 3,100 acres of farmland subleased from Lena Land Lease, LLC. Dunlap, CM, MSB, CHS, and Plaintiffs (by their ownership interest in CM) claim interests in the crop proceeds held in the Dunlap trust account. CHS and MSB claim liens against the crop proceeds based on perfected security interests under Article 9 of the Minnesota Uniform Commercial Code.
According to the Plaintiffs, the proceeds of the crop now held in the trust account of Dunlap are property of the CM bankruptcy estate subject to a security interest asserted by MSB against them. The Plaintiffs urge the Court to issue a ruling regarding the ownership of the proceeds as well as a judicial determination as to the nature, extent, validity, and priority of any asserted security interests or statutory liens asserted against the crop proceeds produced and paid for by CM during the 2015 production year now held in the Dunlap trust account.
Amongst other things, the Plaintiffs also seek declaratory relief to establish the existing rights, status, or other relationship between parties.
CM was originally organized on March 1, 2012, by the execution of the Central Management Partnership Agreement, and its members consisted of Allen and Yvonne Lash, and Harold and Regina Birch with each individual owing a 25% interest. CM was organized to engage in ranching, farming, or any other agricultural or horticultural business. On September 4, 2020, CM filed a petition for relief under Chapter 11 of the Bankruptcy Code in this Court.
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