VeraSun Bankruptcy Update – Farmers Punch Back
VeraSun filed a motion to establish a procedure to assume or reject executory contracts on November 14, 2008. The deadline for corn suppliers to object to VeraSun’s motion is November 21, 2008. Accordingly, a group of approximately 100 farmers did file a motion on November 21 objecting to VeraSun’s motion and requesting the court to establish a time certain for VeraSun to move to either accept or reject executory corn contracts. A hearing on the matter has been set for December 2 in the United States Bankruptcy Court for the District of Delaware.
The following is a breakdown of the common questions associated with these most recent developments:
Question: Who is affected by VeraSun’s Motion?
Answer: All farmers and elevators that have entered into corn sale contracts with any VeraSun ethanol plant for delivery of corn in the future. The Motion also affects the farmers and elevators having contracts to deliver corn to the Janesville and Welcome, MN plants during October, November and December, 2008. In addition, other contracts for fuel purchases and ethanol sales are also subject to the provisions of the VeraSun Motion.
The Center for Agricultural Law and Taxation does not provide legal advice. Any information provided on this website is not intended to be a substitute for legal services from a competent professional. The Center's work is supported by fee-based seminars and generous private gifts. Any opinions, findings, conclusions or recommendations expressed in the material contained on this website do not necessarily reflect the views of Iowa State University.