Trans Coastal Supply Files Bankruptcy Due to Rejection of Corn ShipmentsAugust 13, 2015
Trans Coastal Supply Co. Inc. filed for Chapter 11 on Wednesday, July 29, 2015, in the U.S. Bankruptcy Court for the Central District of Illinois. The U.S. exporter of agricultural commodities blames China’s rejection of cargo shipments for their losses and broken sales contracts.
Rejection of corn shipments began in November 2013, when Chinese officials detected genetically modified traits that had yet to be approved under China’s import regulations. The genetically modified corn seeds in question are known as Agrisure Viptera MIR162 and Agrisure Duracade 5122.
With China being the one of the largest U.S. export markets for corn, this premature release caused a rippling of negative economic impacts on many agricultural affiliates throughout the U.S..
The Decatur, IL grain company and many U.S. farmers have blamed Syngenta, a worldwide Swiss biotechnology agribusiness, for hundreds of millions of dollars in losses because of rejected shipments and downward spiral in the market price for corn.
Syngenta’s decision to market MIR 162 corn in the U.S. – despite the lack of import approval from China – has caused U.S. Corn to be effectively excluded from China and domestic corn prices to be impacted as a result. Over 400 individual lawsuits have been filed against the Swiss company regarding this matter.
Trans Coastal’s president, Pamela Moses, wrote a letter to customers and employees explaining that their company “had been led to believe” that the GMO trait would soon be approved for import into China and that until then would not turn up in shipping cargos. Trans Coastal Supply Co. Inc. primarily ships commodities such as corn and soybean overseas to countries that include Taiwan, Thailand, Malaysia, Indonesia, Vietnam, Philippines, China, and South Korea.
“Neither of these things turned out to be true,” Moses, said. “The predictable result was a downward spiral that included abandoned cargos, rejected documents, rejected cargos, devaluation of markets, and defaulted sales contracts by customers uncertain of their ability to accept delivery, which, combined with our losses resulting from the opposite purchase contracts have debilitated our company.”
In June, Syngenta AG sought to dismiss the lawsuits, which have been consolidated to the U.S. District Court of Kansas, claiming that they should not be held liable for the losses due to the market drop.
All parties suffering financial losses due to Syngenta’s negligence may be entitled to compensation. This includes farmers, shippers, exporters, and others who have had their income impacted by the effects of the corn market’s decline.
To find out more about your right to hold Syngenta accountable for their actions, U.S. farmers may contact our legal team today for a free initial legal consultation. Our team of experienced agricultural attorneys will work to help you cut through the red tape required to file a claim for the losses you have incurred. You can also learn more about how other corn farmers are being represented across the country. Trust your farming future in the hands of those who know how to fight against Goliaths like Syngenta and win. The future of corn farming in the U.S. rests on the shoulders of corn farmers who know how to keep the farming industry honest and fair. Join with other corn farmers across the nation by partnering with Phipps Anderson Deacon LLP.