VeraSun will sell seven of its 16 ethanol plants, at auction, in March. The nation's second-largest ethanol producer has filed for reorganization and will open bids for the seven plants on March 16 with a projected sale closing date of March 31.
Mike Lockrem, spokesman for VeraSun in Sioux Falls, S.D. said additional cash coming from AgStar Financial Services will be put to quick use.
"The debt financing we've received is in order to maintain our workforce and our facilities through April 30," Lockrem said. "Those plants will remain idle."
The seven plants have a combined capacity of about 640 million gallons per year and were all part of VeraSun's purchase of US BioEnergy holdings in November of 2007. At that time, VeraSun President Don Endres estimated the value of the plants' combined operations at $1.5 billion.