LINCOLN, Neb. (DTN) -- A group of four state agencies that need Hansen-Mueller Company to turn over documents necessary to pay farmers out of state bonding funds and to continue unresolved investigations into the Omaha-based company's failure filed a motion in federal bankruptcy court in Nebraska to compel the release of the information.

State grain warehouse regulatory agencies from Louisiana, Minnesota, Missouri and South Dakota told the court the documents were requested before the company filed for Chapter 11 on Nov. 17, 2025.

The documents requested are needed to determine which state's bond is responsible for paying unpaid farmers who sold grain to Hansen-Mueller, as the delivery point and not the origin of the grain determines bond liability, according to court documents filed in the U.S. Bankruptcy Court for the District of Nebraska.

The states are seeking documents that include a company-wide grain payables list, audited financials from September 2025 and estimated trial settlement sheets for all grain sellers, among other information.

SOUTH DAKOTA INVESTIGATION

The state of South Dakota has requested documents to complete an investigation into the Hansen-Mueller collapse.

The South Dakota Public Utilities Commission's Grain Warehouse Program is requesting copies of Hansen-Mueller's line of credit agreement and amendments with BMO Financial Group that went into effect on Aug. 31, 2025; all correspondence between BMO and Hansen-Mueller from May 30, 2025, to Nov. 17, 2025; as well as all records related to the company's dealings with Silverman Consulting.

When it comes to BMO, South Dakota officials are investigating BMO's renegotiation and suspension of the company's line of credit, along with the decision to stop grain payments from July to November in 2025.

As it relates to Silverman Consulting, court documents show South Dakota is investigating who hired the firm, when and why, as well as Silverman's involvement in the decision to stop grain payments and the ultimate Chapter 11 filing.

Abigail Ryan, an attorney representing the states, filed copies of emails with the court alleging in messages exchanged with company counsel that Hansen-Mueller's explanations for not providing documents changed.

"Prior to the bankruptcy filing, as regulator of the debtor, the state sought documents from HM to support HM's statements regarding the purported negotiations and/or suspension of the line of credit and the payments to be made for grain. However, these documents were not provided," Ryan wrote in an April 23, 2026, email to the company's counsel.

Then in a May 16, 2026, email, Ryan wrote, "During the May 2025 to November 2025 time frame, HM's reasons for the suspension of the line of credit and nonpayment for grain changed multiple times, particularly when Silverman Consulting became involved. HM never provided the state with requisite documents and the state has not been able to complete its investigations."

Ryan said in the email that the documents requested are needed for the state to understand "what caused the suspension of the grain payments and settlements, why Silverman Consulting was put into place, and the overall financial condition" of Hansen-Mueller in the months leading up to bankruptcy.

South Dakota regulates Hansen-Mueller as a licensed grain warehouse/buyer, and the state is investigating whether the company fulfilled its obligations to grain producers.

The court filings include a specific list of named South Dakota grain sellers and unsettled contracts that include nonpayment for grain deliveries.

COMPANY RESPONSE

Brian Koenig, an attorney with Koley Jessen P.C., L.L.O. in Omaha who is representing Hansen-Mueller, told DTN the company has been "working with the states" to provide the information requested and "had questions related to the scope that the states' attorney has failed to answer and she filed a premature motion to compel without meeting and conferring to discuss the scope."

A meeting was held in the past two weeks between counsel for Hansen-Mueller and the states.

According to court documents, Hansen-Mueller has contended that the South Dakota PUC's request for all company correspondence with BMO from May 2025 to November 2025 was "too broad and unduly burdensome" and that a request for post-petition contract requests was "too broad and irrelevant."

The states have argued the production of the documents would benefit Hansen-Mueller because state bond payments to grain producers would reduce the dollar value of claims filed in the bankruptcy case.

MINNESOTA, OTHER STATES

The Minnesota Department of Agriculture has asked for settlement sheets for 16 grain sellers in the state, from Jan. 1, 2025, to Nov. 17, 2025, as well as other documents.

Hansen-Mueller's financial condition came into question when the Nebraska Public Service Commission suspended the company's grain dealer license in October 2025.

The company failed to pay nearly $2 million to 38 farmers for deliveries of grain to Hansen-Mueller. The company later paid the farmers.

In its bankruptcy filing, Hansen-Mueller reported it had an estimated 1,000 to 5,000 creditors and listed between $100 million and $500 million in liabilities and assets.

Read more on DTN:

"Grain Dealer Fails to Pay Nebraska Farmers," https://www.dtnpf.com/…

"Hansen-Mueller Leaves Farms in Limbo," https://www.dtnpf.com/…

"Neb. Grain Company Files Chapter 11," https://www.dtnpf.com/…

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

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