VeraSun Receives Financing

Cindy Zimmerman

One of the country’s largest ethanol producers is getting financing in place to maintain operations at 14 plants in eight states under Chapter 11 reorganization.

VeraSunVeraSun Energy Corporation reports it has received commitments for up to $215 million in debtor in possession financing and the U.S. Bankruptcy Court entered an interim order allowing VeraSun and its affiliates to borrow up to $40 million. VeraSun is also in negotiations with its other lenders and expects to receive commitments totaling up to $250 million.

VeraSun and 24 of its subsidiaries filed for relief under chapter 11 of the U.S. Bankruptcy Code on October 31.

Ethanol, News