Buyers line up for AgStar's idled VeraSun ethanol plants
March 5, 2009
BY Ryan C. Christiansen
Web exclusive posted April 2, 2009, at 12:45 p.m. CST
Potential buyers are lining up to purchase the six ethanol plants that a group of 16 lenders, represented by AgStar Financial Services ACA of Mankato, Minn., recently acquired through VeraSun Energy Corp. bankruptcy proceedings. The group of lenders acquired the plants by submitting a credit bid of $324 million.
In Central City, Neb., interested parties have been working with the city to find a new owner for the idled 100 MMgy plant there. "There is a list (of interested parties)," confirmed Cliff Mesner, economic development director for Central City. "We have been in communication with a number of companies throughout this process. Pricing is a problem, but there is a list."
Mesner said he could not name the interested parties, but "we were really pleased to see AgStar buy [the plant] and get it out of that whole bankruptcy environment," he said. "That was just kind of a necessary step to move forward with it. We're very comfortable with having it in AgStar's hands. AgStar has a lot of experience in the area and they understand the industry. We're just confident that they will get it into the hands of a good operator and we'll have a successful plant again here shortly."
In Janesville, Minn., where VeraSun nearly completed a 110 MMgy plant before halting construction due to cash flow issues, the community is now hopeful the AgStar acquisition will lead to production at the plant.
"We're obviously looking forward to going into production," said Paul Pfennig, president of the Janesville Area Chamber of Commerce. "We were anticipating it the last couple-three years here and when this bankruptcy thing happened, it was like everybody got the wind knocked out of them. Last year, we were looking at the possibility of employing some people and getting some new families into town. Obviously, Main Street businesses are looking for a little boost—a little more trade in the area. We're all hoping for it to get into production as soon as possible."
The other plants acquired by the group of 16 lenders include a 50 MMgy plant in Ord, Neb., a 110 MMgy plant in Dyersville, Iowa, a 110 MMgy plant in Hankinson, N.D., and a 50 MMgy plant in Woodbury, Mich. The lending group expects to close on the purchase of the six plants by the second week in April.
While looking for new owners for the plants, AgStar has announced that biorefinery technology provider ICM Inc. of Colwich, Kan., has been retained to manage the six ethanol plants. ICM will manage plant operations, which includes providing human resources services to plant personnel, while the plants remain in "idle mode" until buyers for the plants can be secured, which AgStar estimates will be 60 days.
See the following articles for more information.
Potential buyers are lining up to purchase the six ethanol plants that a group of 16 lenders, represented by AgStar Financial Services ACA of Mankato, Minn., recently acquired through VeraSun Energy Corp. bankruptcy proceedings. The group of lenders acquired the plants by submitting a credit bid of $324 million.
In Central City, Neb., interested parties have been working with the city to find a new owner for the idled 100 MMgy plant there. "There is a list (of interested parties)," confirmed Cliff Mesner, economic development director for Central City. "We have been in communication with a number of companies throughout this process. Pricing is a problem, but there is a list."
Mesner said he could not name the interested parties, but "we were really pleased to see AgStar buy [the plant] and get it out of that whole bankruptcy environment," he said. "That was just kind of a necessary step to move forward with it. We're very comfortable with having it in AgStar's hands. AgStar has a lot of experience in the area and they understand the industry. We're just confident that they will get it into the hands of a good operator and we'll have a successful plant again here shortly."
In Janesville, Minn., where VeraSun nearly completed a 110 MMgy plant before halting construction due to cash flow issues, the community is now hopeful the AgStar acquisition will lead to production at the plant.
"We're obviously looking forward to going into production," said Paul Pfennig, president of the Janesville Area Chamber of Commerce. "We were anticipating it the last couple-three years here and when this bankruptcy thing happened, it was like everybody got the wind knocked out of them. Last year, we were looking at the possibility of employing some people and getting some new families into town. Obviously, Main Street businesses are looking for a little boost—a little more trade in the area. We're all hoping for it to get into production as soon as possible."
The other plants acquired by the group of 16 lenders include a 50 MMgy plant in Ord, Neb., a 110 MMgy plant in Dyersville, Iowa, a 110 MMgy plant in Hankinson, N.D., and a 50 MMgy plant in Woodbury, Mich. The lending group expects to close on the purchase of the six plants by the second week in April.
While looking for new owners for the plants, AgStar has announced that biorefinery technology provider ICM Inc. of Colwich, Kan., has been retained to manage the six ethanol plants. ICM will manage plant operations, which includes providing human resources services to plant personnel, while the plants remain in "idle mode" until buyers for the plants can be secured, which AgStar estimates will be 60 days.
See the following articles for more information.
Advertisement
Advertisement
Advertisement
Advertisement
Upcoming Events
