Web Exclusive: VeraSun Play Pick-and-Choose Game

VeraSun Play the Pick-and-Choose Game as it Struggles through Bankruptcy
By R. Brown, Web Exclusive Posted Nov. 06, 2008
Giant Ethanol fuel producer VeraSun (NYSE: VSE) filed for relief under chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware in Wilmington, October 31, 2008 and now finds its self in a pick-and-choose game regarding which of its plants to keep running and which to shutdown.

Though VeraSun received commitments of financial assistance to the tune of about $250 million, it announced November 4^th it planed to delay startup of its new 110 million gallon per year (MMGY) Janesville, Minn. ethanol biorefinery previously scheduled to begin production later this year. The delay stems from the VeraSun’s inability to secure financing for construction and startup activities. All plant employees are reported to be on temporary leave.

Yesterday, VeraSun announced the startup of its 350 acre, 110 MMGY plant in Hartley, Iowa. CEO Don Endres said, “It [Hartley plant] is one of the largest and most efficient facilities in the nation and further expands VeraSun’s production platform to provide additional scale to our business. We appreciate the support of our team, business partners, and the community of Hartley to help make this day a reality.”

For more information on VeraSun, visit their website, www.verasun.com