VeraSun secures $231 million in debtor-in-posession financing; still seeking funds for two plants

In South Dakota, VeraSun announced that it has received final approval for more than $231 million in debtor-in-possession financing that will allow the company to continue operations during the bankruptcy reorganization period. The Financing includes $40 million previously provided on a temporary business, and $102 million in incremental financing. The remainder of the funds will be used for refinancing certain obligations of the company. VeraSun said that it does not expect all of its plant to resume full operation until permanent financing is secured. The DIP financing covers all of the VeraSun plants except for its facility in Marion, SD and Janesville, MN, for which the company said it is still seeking finance. No new layoffs have been announced as a consequence of the financing.

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