VeraSun Energy is moving to sell its plants.
It has signed an agreement with Valero Energy Corporation to sell substantially all of its assets relating to the production facilities in Aurora, S.D.; Charles City, Fort Dodge, and Hartley, Iowa; and Welcome, Minn.; and a development site in Reynolds, Ind.
The bankruptcy court now requires VeraSun to hold an auction to determine if other bidders will offer more favorable terms than Valero.
VeraSun has grouped its other production facilities to be sold. They consist of the
• US BioEnergy Group consisting of production facilities in Central City and Ord, Neb.; Albert City and Dyersville, Iowa; Hankinson, N.D.; Janesville, Minn., and Woodbury, Mich.
• ASA Group consisting of production facilities in Albion, Neb., Bloomingburg, Ohio, and Linden, Ind.
• Marion Group consisting of the production facility in Marion, S.D.
Interested bidders must submit qualifying bids by March 13.
If qualifying bids are received, the Company would conduct an auction on March 16, 2009 and, following Bankruptcy Court approval at a sale hearing, expect to complete the asset sales by March 31, 2009, or early in the second quarter, subject to regulatory and other customary closing conditions.
Source: VeraSun Energy