Farmers file objection against VeraSun
VeraSun Energy Corp., producer and marketer of ethanol and distillers grains said it has rejected 10 corn contracts totalling approximately $360,000 and warned that more may need to be voided in the future.
This announcement has made a group of 80 Iowa and
Minnesota farmers who sold corn on contract to VeraSun to file an objection to
force the company to pay the contracts. The company was filed for bankruptcy
protection in late October, but the company said it has paid or will pay for
substantially all pre-petition corn delivered after Oct. 11, 2008, and
post-petition corn delivered after Oct. 31, 2008.
Minnesota farmers who sold corn on contract to VeraSun to file an objection to
force the company to pay the contracts. The company was filed for bankruptcy
protection in late October, but the company said it has paid or will pay for
substantially all pre-petition corn delivered after Oct. 11, 2008, and
post-petition corn delivered after Oct. 31, 2008.
VeraSun said it may
need to reject some corn contracts for delivery through Dec. 31, 2008, at its
Janesville and Welcome, Minn., facilities due to the delayed startups. In
addition, other contracts may need to be rejected or renegotiated as the company
works through them on an individual basis.
A hearing will be held at Dec.
2 in Delaware to review VeraSun’s request and any objections
filed.
[Source: Food Business News]
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