Home News Livestock Crops Markets Hay, Range & Pasture Home & Family Classifieds Resources This Week's Journal



Farm Survey


AgriMartin
Journal Getaways

Advertisement
Reader Comment:
by Greater Franklin County

"Thanks for picking up the story about our Buy One Product Local campaign --- we're"....Read the story...
Join other discussions.

VeraSun Energy receives final bankruptcy court approval for debtor-in-possession financing totaling $196.6 million from senior secured noteholders

Also receives approval for AgStar and West LB DIP Facilities

VeraSun Energy Corporation announced that the U.S. Bankruptcy Court has entered orders granting final approval for debtor-in-possession financing totaling $196.6 million, including $93.6 million of incremental financing, $25 million of which was previously loaned to the Company on an interim basis, to be provided by certain holders of VeraSun's 9 7/8 percent senior secured notes due 2012. The incremental financing will be available, subject to certain conditions, to fund operations at ethanol production facilities in Aurora, S.D. and Fort Dodge, Charles City and Hartley, Iowa and to maintain the idled Welcome, Minn., facility. The balance of the financing consists of approximately $103 million used to refinance prepetition loans that had been made by the noteholders who participated in the DIP financing. This DIP financing matures on Nov. 3, 2009.

VeraSun Energy Corporation announced that the U.S. Bankruptcy Court has entered orders granting final approval for debtor-in-possession financing totaling $196.6 million, including $93.6 million of incremental financing, $25 million of which was previously loaned to the Company on an interim basis, to be provided by certain holders of VeraSun's 9 7/8 percent senior secured notes due 2012. The incremental financing will be available, subject to certain conditions, to fund operations at ethanol production facilities in Aurora, S.D. and Fort Dodge, Charles City and Hartley, Iowa and to maintain the idled Welcome, Minn., facility. The balance of the financing consists of approximately $103 million used to refinance prepetition loans that had been made by the noteholders who participated in the DIP financing. This DIP financing matures on Nov. 3, 2009.

"The DIP financing will allow us to focus on running the business while undergoing the restructuring process as part of addressing VeraSun's long-term future," said Don Endres, VeraSun's Chief Executive Officer.

VeraSun continues efforts to secure long-term financing for its ethanol production facility in Marion, South Dakota. Its facility in Janesville, Minnesota remains idle. The Court approved the Company's request to reject certain corn contracts for delivery through December at the idled Welcome and Janesville facilities. The Company also intends to reject corn contracts for delivery through Jan. 31, 2009 at those facilities. In addition, because the company does not expect to operate the production facilities located in Central City, Ord, Dyersville, Albert City, Hankinson, and Woodbury through Jan. 15, 2009, the Company informed the Court that it intends to reject contracts for delivery of corn scheduled at these facilities during this period. This action responds to a number of requests by producers to gain certainty on the status of their corn contracts and will allow them to move forward to remarket their corn.

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, Delaware on October 31, 2008. The chapter 11 cases are being jointly administered under Case No. 08-12606 (BLS). For more information, please visit www.verasun.com.

For more information, please visit VeraSun Energy's websites at www.verasun.com or www.VE85.com.

1/5/09
6 Star Midwest Ag\2-B

Date: 12/30/08



Google
 
Web hpj.com

Copyright 1995-2014.  High Plains Publishers, Inc.  All rights reserved.  Any republishing of these pages, including electronic reproduction of the editorial archives or classified advertising, is strictly prohibited. If you have questions or comments you can reach us at
High Plains Journal 1500 E. Wyatt Earp Blvd., P.O. Box 760, Dodge City, KS 67801 or call 1-800-452-7171. Email: webmaster@hpj.com

 

Archives Search



Inside Futures

Editorial Archives

Browse Archives