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

February 6, 2013 | Roger McEowen
 
Verasun Energy Corporation and twenty-four of its subsidiaries filed for Chapter 11 bankruptcy protection on October 31, 2008. In 2009, Verasun sold some of its plants to Valero and others to smaller companies.
 
In a letter dated August 20, 2010, counsel for the “reorganized debtors” has informed parties that sold corn to Verasun in the 90-day timeframe preceding the company’s bankruptcy filing that they have until September 30, 2010, to repay 80 percent of what Verasun paid them for their corn. Such sellers should carefully consider the letter because it is possible that a seller’s failure to respond to the letter could result in the bankruptcy court authorizing 100 percent repayment. At the present time, it is not known what the total amount of payments are that the bankruptcy trustee has identified as having been made by Verasun to its suppliers within 90 days
of Verasun’s October 31, 2008 bankruptcy filing. 
 
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