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VeraSun asset sales approved
By Caroline Salls
Pittsburgh, March 18 - VeraSun Energy Corp. received court approval of the sale of substantially all of its assets to Valero Energy Corp. subsidiary Valero Renewable Fuels and VeraSun's secured lenders, according to a company news release.
The company said it selected Valero 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 said its secured lenders submitted credit bids for each of its remaining facilities, and the sales are expected to close in the next two to six weeks.
Valero has agreed to purchase the VSE Group facilities for a base purchase price of $350 million, and to pay $72 million for the U.S. Bio Energy facility in Albert City, Iowa, and $55 million for the ASA facility in Albion, Neb., plus working capital and other adjustments.
The secured lenders' successful credit bids included a $93 bid submitted by Dougherty Funding, LLC for the Marion, S.D., production facility; a $324 million bid submitted by a group of lenders led by AgStar Financial Services for the remaining U.S. BioEnergy Group, including ethanol production facilities in Central City and Ord, Neb., Dyersville, Iowa, Hankinson, N.D., Janesville, Minn., and Woodbury, Mich.; and a $99 million bid submitted by a group of lenders led by West LB AG for the remaining ASA Group facilities, consisting of production facilities in Bloomingburg, Ohio, and Linden, Ind.
VeraSun, based in Brookings, S.D., produces renewable fuel. The company filed for bankruptcy on Oct. 31 in the U.S. Bankruptcy Court for the District of Delaware. Its Chapter 11 case number is 08-12606.
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