VeraSun auction of U.S. BioEnergy planned by March

NEW YORK (Reuters) – Ethanol maker VeraSun Energy Corp received interim approval from a Delaware bankruptcy court judge to auction most of its U.S. BioEnergy ethanol plants by the end of March, according to court documents.

VeraSun, which filed for bankruptcy in October due to high corn prices, weak ethanol prices and a lack of access to financing, has had the U.S. BioEnergy plants idled since last year. It bought the plants for less than $700 million in 2008.


The court approval for the sale of seven of the eight U.S. BioEnergy plants is part of a new bankruptcy financing agreement with lenders that replaces incremental funds that expired on Jan. 15, according to the documents.

U.S. BioEnergy’s Marion, South Dakota plant is backed by a different lender and isn’t included in the plan, VeraSun spokesman Mike Lockrem said.

Reuters