BANKRUPT BANKER
Bankrupt VeraSun Energy Corp. will be allowed to get financing to keep its plant operational and its employees paid.
Sunday 7 December 2008
Bankrupt VeraSun Energy Corp. will be allowed to get financing to keep its plant operational and its employees paid.The U.S. Bankruptcy Court in Delaware ruled that the nation's second-largest ethanol producer can get $196.6 million in debtor-in-possession financing after it filed bankruptcy in October.VeraSun says $93 million will be spent to keep ethanol plants in Fort Dodge, Hartley and Charles City operational, as well as a plant in Aurora, S.D., and to maintain an idle plant in Welcome, Minn.The court also approved $24.5 million from a group of lenders, part of which the company says it will use to keep its facilities operable until mid-January.
VeraSun suffered significant losses in the third quarter after it locked into higher-than-market corn prices.
