VeraSun Energy Receives Bankruptcy Court Approval for Sale of Company Assets to Valero and Secured Lenders
Valero to Purchase Seven Facilities and Development Site. Secured Lenders Credit Bid for Remaining Assets. Transactions Expected to Close in 2 to 6 weeks.
From VeraSun News Release
VeraSun Energy Corp. today announced that the U.S. Bankruptcy Court has approved the sale of sustainably all the Company’s assets. Yesterday at an auction in Wilmington, Del., VeraSun selected Valero Renewable Fuels as the successful bidder for assets contained in the “VSE Group”, in addition to ethanol production facilities in Albion, Neb., and Albert City, Iowa. The secured lenders submitted credit bids for each of the remaining facilities. The sales are expected to close during the next two to six weeks.
The VSE Group consists of production facilities in Aurora, S.D.; Charles City, Fort Dodge and Hartley, Iowa, and Welcome, Minn., and a development site in Reynolds, Ind.
Valero Renewable Fuels is a subsidiary of Valero Energy Corporation, North America’s largest petroleum refiner and marketer based in San Antonio, Texas. Valero has agreed to purchase the VSE Group facilities for a base purchase price of $350 million, $72 million for the US Bio Energy facility in Albert City, Iowa and $55 million for the ASA facility in Albion, Neb., plus working capital and other certain adjustments.
The secured lenders for the remaining facilities submitted successful credit bids. Dougherty Funding, LLC submitted a credit bid of $93 million for the Marion, S.D. production facility. A group of lenders led by AgStar Financial Services submitted a credit bid of $324 million for the remaining “US BioEnergy Group”, which includes ethanol production facilities in Central City and Ord, Neb.; Dyersville, Iowa; Hankinson, N.D.; Janesville, Minn., and Woodbury, Mich. A group of lenders led by West LB AG submitted a credit bid of $99 million for the remaining “ASA Group” facilities, consisting of production facilities in Bloomingburg, Ohio and Linden, Ind.
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.
About VeraSun Energy Corporation
VeraSun Energy Corporation (VSUNQ), headquartered in Sioux Falls, S.D., is a leading producer and marketer of ethanol and distillers grains. Founded in 2001, the Company has a fleet of 16 production facilities in eight states. VeraSun Energy currently has an annual potential production capacity of approximately 1.64 billion gallons of ethanol and 5 million tons of distillers grains.
VeraSun also markets E85, a blend of 85 percent ethanol and 15 percent gasoline for use in Flexible Fuel Vehicles (FFVs), directly to fuel retailers under the brand VE85®. For more information, please visit VeraSun Energy’s websites at www.verasun.com