SIOUX FALLS, S.D. — VeraSun Energy Corporation is asking the U.S. Bankruptcy Court for the District of Delaware for permission 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, S.D.; Charles City, Fort Dodge, and Hartley, Iowa; and Welcome, Minn.; and a development site in Reynolds, Ind.
The Valero agreement lists a purchase price of $280 million, plus the value of inventory and certain pre-paid expenses.
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.. Under a proposed bid, the company is seeking to sell all of its production facilities and operations in separate or combined transactions.
Don Endres, VeraSun’s CEO, said the company has sufficient liquidity to maintain its production facilities and workforce until a sale is completed.
“We continue to be optimistic about the long-term viability of the renewable fuels industry,” added Endres.
Interested bidders must submit qualifying bids by March 13, 2009. If qualifying bids are received, VeraSun would conduct an auction March 16 and, following court approval, expects to complete the asset sales by March 31, or early in the second quarter.
VeraSun and 24 of its subsidiaries filed petitions for relief under chapter 11 Oct. 31, 2008.
Verasun is selling substantially all of its assets, which may be generally characterized as four operating groups:
— The “VSE Group” consisting of production facilities subject to the Valero bid.
— The “Marion Group” consists of the production facility in Marion, S.D.