REG Buys Nova Biosource’s Biodiesel Assets

John Davis

Iowa-based biodiesel maker Renewable Energy Group has bought up the biodiesel assets of Nova Biosource Fuels of Seneca, Illinois.

This Security and Exchange Commission filing
says REG will also assume Nova’s debts of about $36.25 million.

Pursuant to the Seneca Asset Purchase Agreement, the Seneca Purchaser agreed to acquire substantially all of the Seneca Sellers’ assets, excluding certain specified assets, used in manufacturing ASTM D6751 quality biodiesel and related co-products out of its production facilities in Seneca, Illinois, including all patents and intellectual property rights to Nova’s process technology, and to assume bank term debt of approximately $36,250,000.

It was about a year ago that Nova filed for Chapter 11 bankruptcy in an attempt to reorganize and stay afloat.