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VeraSun Energy’s selection of Valero Renewable Fuels as the successful bidder for several Midwest ethanol production facilities was confirmed last week by the U.S. Bankruptcy Court. While the National Corn Growers Association (NCGA) expects most 2008 VeraSun contracts to be voided as a result of the auction, it recommends affected farmers confirm this with their local buyers.
According to VeraSun, Valero was the successful bidder for ethanol production plants in Albion, Neb.; Aurora, S.D.; Albert City, Charles City, Fort Dodge and Hartley, Iowa; and Welcome, Minn. The sale also includes a development site in Reynolds, Ind.
In addition, secured lenders for the remaining facilities submitted successful credit bids. Dougherty Funding, LLC submitted a credit bid for the Marion, S.D. production facility. A group of lenders led by AgStar Financial Services submitted a credit bid for the remaining U.S. BioEnergy Group, which includes ethanol production facilities in Central City and Ord, Neb.; Dyersville, Iowa; Hankinson, N.D.; Janesville, Minn., and Woodbury, Mich. A group of lenders led by West LB AG submitted a credit bid for the remaining ASA Group facilities, consisting of production facilities in Bloomingburg, Ohio and Linden, Indiana.
The sales are expected to close in April.
VeraSun selected Valero as the successful bidder to purchase the VSE Group facilities for a base purchase price of $350 million, $72 million for the US Bio Energy facility in Albert City, Iowa and $55 million for the ASA facility in Albion, Neb., plus working capital and other certain adjustments.
VeraSun and 24 of its subsidiaries filed petitions for relief under chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court in Wilmington, Del. this past October. VeraSun, headquartered in Sioux Falls, South Dakota, is a producer and marketer of ethanol and distillers grains. For more information, visit VeraSun's wesite at http://www.verasun.com. Agriview.com - March 26, 2009 |
