Otter Tail Ag Enterprises seeking loan default waivers

By Caroline Salls

Pittsburgh, Feb. 18 - Otter Tail Ag Enterprises, LLC said it is working with lenders to negotiate waivers of non-payment defaults on several loan agreements, according to an 8-K filed with the Securities and Exchange Commission.

Otter Tail said it failed to pay interest due on its master loan agreement with Agstar Financial Services, PCA. The company said it has a $29 million construction term loan, a $6 million revolving term loan and a $6 million revolving line of credit outstanding with Agstar, each governed by the master loan agreement.

In addition, the company said it has failed to pay interest due on its construction and term loan agreement with MMCDC New Markets Fund II, LLC. Otter Tail has a $14.48 million term loan and a $4.69 million subordinated note outstanding with NMF.

Finally, Otter Tail said it failed to make basic payments on its capital lease with Otter Tail County, Fergus Falls, Minn.

The company said basic payments are defined as an amount equal to total principal and interest on subordinate exempt facility revenue bonds, series 2007A and general obligation tax abatement bonds, series 2007B and series 2007C.

Otter Tail said it has a $26.01 million capital lease, equal to $20 million subordinate exempt facility revenue bonds series 2007A and $6.01 million general obligation tax abatement bonds series 2007B and series 2007C outstanding with the county.

The company said none of the lenders has accelerated the debt to date.

Otter Tail is a Fergus Falls, Minn., ethanol company.

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