VeraSun gets commitment for $30 million DIP loan to cover debtor facilities

By Caroline Salls

Pittsburgh, Nov. 6 - VeraSun Energy Corp. requested court approval of a $30 million debtor-in-possession credit facility for its ASA debtors from WestLB AG, according to a Wednesday filing with the U.S. Bankruptcy Court for the District of Delaware.

The ASA debtors include ASA Albion, LLC; ASA Bloomingburg, LLC; ASA Linden, LLC; and ASA OpCo Holdings, LLC.

The proceeds of the financing will be used to meet working capital needs at the ASA facilities.

Although the final terms are still being negotiated, VeraSun said it expects the interest rate to be Libor plus 1,000 basis points, provided that the applicable spread will increase by 200 bps six months after the interim order is entered and another 200 bps nine months after the interim order.

The exact maturity date has not been set, but the facility will mature 45 days after the interim order is entered if a final order has not been entered, upon the sale of substantially all of the company's assets or on the effective date of a plan of reorganization.

The company is requesting interim access to $15 million of the DIP facility.

The interim hearing is scheduled for Nov. 10.

VeraSun, based in Brookings, S.D., produces renewable fuel. The company filed for bankruptcy on Oct. 31. Its Chapter 11 case number is 08-12606.

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