Kansas City, Mo. ? Businesses and individuals who thought they lucked out when they got paid before Farmland Industries Inc. filed for bankruptcy in 2002 are getting a rude awakening in the mail.

Attorneys for the failed farmers’ cooperative have filed court actions against 500 bondholders and 200 trade creditors asking them to return money they received shortly before Farmland’s filing for Chapter 11 bankruptcy protection.

Also, seven former Farmland executives are being asked to repay almost $244,000, including $75,000 each from former chief executives Harry Cleberg and Robert Honse. Honse is a resident of Lawrence, Kan.

Officials overseeing Farmland’s liquidation declined to say how much money was included in the so-called preference payments or how much they could add to checks going out to creditors later this month.

The actions were filed with the bankruptcy court late last month.

Federal bankruptcy law considers a company going into bankruptcy as being insolvent up to three months before the actual bankruptcy filing and anyone who received money from the company during that time should be treated like any other creditor.

The law also allows trustees overseeing a liquidation to request that money be repaid and split among all creditors.

Farmland plans to repay creditors between 60 cents and 82 cents for every dollar owed. The letters sent to creditors requesting repayment said initial payments to creditors would be between 58 cents and 60 cents on the dollar.

The letters offered three options for creditors willing to settle their disputes: pay 30 percent to resolve the action and give up their rights to further refunds; pay 90 percent and be treated like other creditors for that amount; or use money they are still owed to offset the amount demanded by the company.

Creditors have until June 18 to pick an option and make their payments, the letters say. If the claim is not resolved by Aug. 1, Farmland’s attorneys can go to court for the full amount.