NCGA: more answers on VeraSun bankruptcy
Dec 31, 2008 8:06 AM, From the NCGA
The National Corn Growers Association has updated information for corn growers concerned about the status of pending contracts with the bankrupt ethanol producer VeraSun.
Newly posted on the NCGA Web site are briefing papers that update growers on how VeraSun is handling contracts on a plant-by-plant basis and the alternatives for growers should VeraSun sell some or all of its plants.
With regard to the former, attorneys for NCGA point out that VeraSun generally seems to be handling grower contracts based on the original ownership of the ethanol facilities, but growers need to check with the plants directly to determine what arrangements can be made.
Should some of the plants be sold, attorneys say that while it seems unlikely buyers will want to assume above-market contracts, they will need a steady supply of corn. They will also need some amount of good will — or at least will want to avoid bad will among the local or regional producers. That could leave the door open for a consensual agreement that could work to the grower’s advantage.
“In today’s volatile economy, growers who have contracted to sell grain to VeraSun need to stay completely informed about the bankruptcy process and how these contracts are handled,” said Ron Litterer, NCGA chairman. “We’re committed to ensure that the interests of U.S. corn growers are protected and their voices heard.”
Litterer, a grower from Greene, Iowa, is leading an ad hoc advisory committee formed to make certain that the views, expertise, and interests of corn growers in the VeraSun case were represented effectively before the U.S. bankruptcy court in Delaware and to VeraSun, and to help keep members of NCGA and state affiliates informed regarding the process and activities of VeraSun’s situation.
Find NCGA’s VeraSun Bankruptcy Resource Page at http://www.ncga.com/.
