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More VeraSun Bankruptcies Coming?

Corn buys got the company in trouble.

There doesn’t appear to be more ethanol companies in the Dakotas that are going to immediately follow VeraSun into bankruptcy.

Over the weekend, VeraSun -- headquartered in Brookings, S.D. -- declared bankruptcy. It has 16 plants in eight states in the U.S. and is the nation’s largest producer and marketer of ethanol and distillers grains.

Operations will continue under protection of the court.

Published reports based on the bankruptcy filing say that VeraSun bet that corn prices would go higher after heavy rains flooded parts of Iowa and cool weather set in across the Midwest this summer. It locked in corn prices near what turned out to be the top of the market.

Glacial Lakes Energy, Watertown, S.D., is only other local ethanol company whose name has surfaced in the wake of the VeraSun bankruptcy.

Glacial Lakes, which recently opened a new plant in Mina, S.D., is trying to raise $11 million in capital.

The investor-owned ethanol producer will hold a meeting Nov. 8 to pitch the proposal to shareholders. The meeting is not open the public.

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