VeraSun Energy’s selection of Valero Renewable Fuels as the successful bidder for several Midwest ethanol production facilities, confirmed today by the U.S. Bankruptcy Court, was noted by farmers concerned about their contracts to provide corn. 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.
“We know there are still many questions to resolve about the 2008 corn contracts,” says NCGA Chairman Ron Litterer, who is leading an ad-hoc committee of corn farmers to represent the interests of the U.S. corn industry in the VeraSun bankruptcy proceedings. “We are relieved these plants are not being shuttered, and hope that as the economy rebounds improvement will be seen in the ethanol industry and rural America.”
According to VeraSun, Valero was the successful bidder for ethanol production plants in Albion, NE; Aurora, SD; Albert City, Charles City, Fort Dodge and Hartley, IA; and Welcome, MN. The sale also includes a development site in Reynolds, IN.
In addition, secured lenders for the remaining facilities submitted successful credit bids. Dougherty Funding, LLC submitted a credit bid for the Marion, SD 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, NE; Dyersville, IA; Hankinson, ND; Janesville, MN; and Woodbury, MI. 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, OH, and Linden, IN.
The sales are expected to close in April. Click here for more on the VeraSun bankruptcy and NCGA’s involvement in representing farmers and providing information to them.