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The Verasun Bankruptcy – Can The Bankruptcy Trustee Recover Payments Made To Suppliers Within 90 Days of the Bankruptcy Filing?

- by Roger McEowen

Updated February 6, 2013

 

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VeraSun Corn Suppliers Must Respond to Preference Demand Letter by Sept. 30

September 20, 2010

Iowa State University Extension held the Charles City meeting and one in Fort Dodge a week earlier to help farmers better understand the legal issues and the required response associated with the letters. For the convenience of those unable to attend either of the meetings, ISU Extension videotaped the Charles City session. The videotape is available for viewing on the ISU Extension video website.

Erin Herbold, CALT's staff attorney, outlined the suppliers’ legal options and discussed the defenses suppliers have. “Suppliers who did nothing wrong are being asked to provide information to the trustee to establish their defenses,” said Herbold. “Some will have strong defenses and the trustee may cease further inquiry; some suppliers will have partial defenses that may provide room for negotiation for a lower settlement; and some will have no defense.”

Click here to view press release.