Hansen-Mueller, the Nebraska grain company that drew scrutiny from state regulators after farmers said they weren’t getting paid, has filed for Chapter 11 bankruptcy protection, citing a string of costly missteps that ranged from failed business expansions to multimillion-dollar software woes.

The Nebraska Public Service Commission called an emergency meeting Oct. 24 to suspend the company’s grain dealer license and file a formal complaint. Commissioners required proof of a line of credit sufficient to cover the company’s obligations, which Hansen-Mueller submitted on Oct. 30, along with payments owed to Nebraska producers.

The PSC said those conditions had been met and reinstated the company’s license in early November.

On Nov. 17, Hansen-Mueller filed for bankruptcy.

In its petition, the company lays out a years-long series of costly business failures and mounting regulatory pressure that it says left the Omaha-based grain firm with no choice but to seek Chapter 11 protection.

Hansen-Mueller reports losing roughly $15 million on an attempted conversion of a Fremont pasta plant purchased in 2017; another $11 million on the development of a proprietary trading software platform that never worked; and about $10 million tied to the purchase and later sale of eight grain elevators acquired from 2016 to 2017.

The company also cites $3.5 million in arbitration losses, as well as the impact of Trump-era tariffs on its export business — all of which, it says, eroded working capital and accelerated its financial decline.

Company leaders say the situation worsened sharply after the PSC suspended its grain dealer license, triggering inquiries from other state regulators, increasing pressure from creditors and forcing executives to divert their attention away from operations and a planned sale of company assets.

According to the filing, the loss of the license created a “domino effect” that drained staff capacity, strained cash flow and ultimately pushed Hansen-Mueller into Chapter 11 so it could protect its remaining value while pursuing a rapid sale process.

The company says it has cut its workforce to about 120 employees and argues that keeping key personnel in place — including its president and chief administrative officer, who have been working 14- to 16-hour days — is essential to maintaining operations during the bankruptcy.

The PSC said in a news release that commissioners are actively evaluating the bankruptcy filing and its potential impact but would not comment beyond an official statement:

“Our top priority is safeguarding Nebraska grain farmers. We will closely monitor this development to ensure transparency, compliance and continued protection for all affected parties, as allowed by law.”

In court filings, Hansen-Mueller reports between 1,000 and 5,000 creditors. The company lists assets in the range of $100 million to $500 million and liabilities in the same range.

The filings show that many of Hansen-Mueller’s largest unsecured creditors are familiar names across Nebraska’s farm country, including Ag Valley Coop in Edison, which is owed about $559,000, and Farmers Coop Grain & Supply in Trenton, owed $813,000. Producer Ag LLC of Lincoln also appears on the list with a claim of roughly $933,000. Several regional and national grain players — including Cargill, owed $2.57 million, and West Plains LLC in Omaha, owed $639,000 — are also among the top unsecured creditors.

Kansas firms make up a large share of the remaining claims, reflecting Hansen-Mueller’s trading footprint. Agmark LLC in Beloit is owed more than $2 million, while Alliance Ag & Grain in Spearville, Frontier Ag in Goodland, Home City Grain, Stafford County Flour Mills, Sublette Coop and The Hi-Plains Cooperative in Colby each list claims ranging from about $570,000 to $1 million. Beyond the Plains, creditors stretch as far as Minnesota, Arkansas and Canada — including a $4.6 million claim from Viterra — but the filings make clear that the heart of the fallout sits squarely in Nebraska and Kansas.

Hansen-Mueller’s core business spans several major grain markets, including a dominant position in oats trading — where the company says it accounts for 30% to 70% of the futures market, moving roughly 18 million bushels a year through facilities in Minnesota, North Dakota, Wisconsin and Ohio. The company also handles more than 77 million bushels of wheat annually, serving mills and multinational processors through sites along the I-29 corridor and a leased fleet of private railcars. Beyond its oats and wheat divisions, Hansen-Mueller runs a nationwide cross-country trading desk for corn, soybeans, milo and feed, supported by offices in Kansas, Nebraska, Missouri, Ohio, Louisiana and Alabama.

The PSC offers the following guidance to members of Nebraska’s grain industry:
• Bankruptcy case information, including court filings and claims information, is available on the Hansen-Mueller restructuring website or by calling toll-free (877) 717-1702.
• Contact the PSC Grain Department at or (402) 471-0223 to report concerns.