VeraSun Ethanol Plants Sold
VeraSun Energy Corp. said on March 19 that it had selected Valero Renewable Fuels as the successful bidder for assets contained in the "VSE Group," in addition to ethanol production facilities in Albion, NE, and Albert City, IA, following an auction in Wilmington, DE.
The VSE Group consists of production facilities in Aurora, SD; Charles City, Fort Dodge and Hartley, IA, and Welcome, MN, and a development site in Reynolds, IN.
Upon the conclusion of the auction, VeraSun selected Valero as the successful bidder 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, IA, and $55 million for the ASA facility in Albion, NE, plus working capital and other certain adjustments.
The remaining facilities also received successful bids from Dougherty Funding, LLC, a group of lenders led by AgStar Financial Services, and a group of lenders led by West LB AG.
VeraSun will seek approval of the successful bids at a sale hearing conducted by the US Bankruptcy Court. The sales are expected to close in April.
Last fall, VeraSun and 24 of its subsidiaries filed petitions for relief under chapter 11 of the U.S. Bankruptcy Code.