VeraSun Energy shuts down corn receiving, processing at Iowa facility; company confirms more than one plant will be affected

In South Dakota, VeraSun Energy said that it has stopped processing and receiving corn at some of its facilities. At press time, the company had not confirmed all the plants that were under shutdown but shutdown of the 110 Mgy Dyersville, IA plant is confirmed. The company called the shutdown a temporary event, while it secures new financing under bankruptcy protection.

The company told Reuters that it will pay for some or all of corn received since October 11 (20 days before the 10/31 Chapter 11 filing), and for all corn delivered subsequently. Analysts said that VeraSun’s difficulties were not necessarily indicative of general conditions as they stemmed from poor hedging executed by the company during the summer.

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