Business

VeraSun to sell ‘substantially all assets’

VeraSun Energy Corporation announced Monday that it has filed a Bid Procedures and Sale Motion in the United States Bankruptcy Court for the District of Delaware seeking authority to sell substantially all of the assets of VeraSun Energy Corporation and 24 of its affiliates through a court-approved sale process.

As part of the sales process, the Company has signed an agreement with Valero Energy Corporation to sell substantially all of its assets relating to the VeraSun production facilities in Aurora, SD; Charles City, Fort Dodge, and Hartley in Iowa, and Welcome, MN. All five of these facilities are currently operating. The company also seeks to sell a development site in Reynolds, IN, as part of the deal.

The Valero purchase agreement provides for a purchase price of $280 million, plus the value of inventory and certain pre-paid expenses, subject to certain customary adjustments. Having entered into the Valero agreement, VeraSun is now required to hold an auction to determine if other bidders will offer more favorable terms than Valero’s bid, referred to as a “stalking horse” bid.

Valero is an oil drilling and refining company with 17 petroleum refineries in Texas, California, Oklahoma, Louisiana, Tennessee, Delaware, Quebec, Canada and the Island of Aruba.

Last month, VeraSun announced it was putting seven of its ethanol production plants up for auction as part of a bankruptcy financing agreement. These plants are at Ord and Central City, NE; Alberg City and Dyersville, IA; Woodbury, MI; Hankinson, ND, and Janesville, MN.

The company has not yet made an announcement concerning its biorefineries at Albion, NE, Blomingburg, OH, Linden, IN, or Marion, SD.