VeraSun Energy has filed bid procedures and sale motion in the US Bankruptcy Court for the District of Delaware seeking authority to sell substantially all of the assets of VeraSun Energy and 24 of its affiliates through a court-approved sale process.
As part of the sales process, the company has signed an agreement with Valero Energy to sell substantially all of its assets relating to the VeraSun production facilities in Aurora, South Dakota; Charles City, Fort Dodge, and Hartley, Iowa; and Welcome, Minnesota; and a development site in Reynolds, Indiana.
The Valero purchase agreement provides for a purchase price of $280 million, plus the value of inventory and certain pre-paid expenses, subject to certain customary adjustments. Having entered into the Valero agreement, the company is now required to hold an auction to determine if other bidders will offer more favorable terms than Valero’s bid.
Under the proposed bid procedures, the company is seeking to sell all of its production facilities and operations in separate or combined transactions.
While the company has received expressions of interest with respect to assets other than those that are the subject of the proposed Valero transaction, the company has not yet negotiated a definitive agreement to sell any other facilities.
Don Endres, CEO of VeraSun Energy, said: Given current difficult industry conditions and continued constrained credit markets, we believe that commencing a sale process is in the best interest of company stakeholders.
