VeraSun mulling bankruptcy, obtains debtor-in-possession financing, report says
In South Dakota, reports have emerged that VeraSun Energy is considering a bankruptcy filing. Shares of the company’s stock plunged 53.3 percent yesterday to $0.49 after Debtwire filed a story on Tuesday obtained debtor-in-possession financing from Ableco Finance, the speciality finance arm of Cerberus Capital.
Oppenheim Research analyst Joseph Gomes quoted an unnamed VeraSUn manager who said “We have not made that decision.” The company has been up for sale since September after a liquidity crisis that commenced with a costly unwinding of hedge positions in corn.
VeraSun, with 1.6 billion gallons in production capacity planned by the end of this year, had become one of the nation’s largest ethanol producers. Meanwhile, production resumed at the company’s 100 Mgy Linden, Indiana plant after a short slowdown.
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