Minnesota’s Otter Tail defaults on loans for Fergus Fall ethanol plant; restructuring debt, raising fresh equity, say owners

In Minnesota, Otter Tail Ag Enterprises has defaulted on its $31 million master loan with Agstar Financial Services and is behind on payments for two other debts including a 19.2 million construction loan payment due to MMCDC New Markets Fund, according to the Twin Cities Business Journal. The company owns the 55 Mgy Fergus Falls ethanol plant. Otter Tail said that it is working with lenders to restructure commitments, as well as raising fresh capital from its original investors.

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