You are here
SIOUX FALLS, S.D. -- Following an auction in Wilmington, Del., VeraSun Energy Corp., which previously filed for Chapter 11 bankruptcy, selected Valero Renewable Fuels as the successful bidder for assets contained in its VSE Group, in addition to ethanol production facilities in Albion, Neb., and Albert City, Iowa. VeraSun’s secured lenders submitted successful credit bids for the remaining facilities.
The VSE Group consists of production facilities in Aurora, S.D.; Charles City, Fort Dodge and Hartley, Iowa; Welcome, Minn.; and a development site in Reynolds, Ind.
Valero is purchasing the VSE Group for $350 million. The company is paying $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.
The sales are expected to close in April. 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 Oct. 31, 2008.
VeraSun Energy Corp. was founded in 2001 and had 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 directly to fuel retailers under the brand VE85.