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Valero the top bidder for VeraSun assets

Agriculture.com Staff 03/18/2009 @ 8:12am

Valero Renewable Fuels has been tabbed as the new owner of the assets of ethanol-maker VeraSun Energy Corp., according to a VeraSun report. Valero was the top bidder for the VeraSun assets in an auction earlier this week in Wilmington, Delaware.

The base price for the assets of VSE Group, VeraSun's holding company, is $350 million, with Valero paying an additional $72 million and $55 million for additional ethanol plants in Albion, Nebraska, and Albert City, Iowa, according to a company report.

VeraSun's holding company VSE Group also owns ethanol plants in Aurora, South Dakota; Fort Dodge and Hartley, Iowa; and Welcome, Minnesota. The company is also developing a new plant in Reynolds, Indiana.

The deal's not quite done: VeraSun, who with 24 of its subsidiaries filed for Chapter 11 Bankruptcy protection last October, now must get approval of the sale in a hearing in the U.S. Bankruptcy Court scheduled for mid-day on Wednesday. Pending approval, the sale will close next month, VeraSun officials say.

VeraSun currently has an annual potential production capacity of approximately 1.64 billion gallons of ethanol and 5 million tons of distillers grains, according to a company report.

Valero Renewable Fuels has been tabbed as the new owner of the assets of ethanol-maker VeraSun Energy Corp., according to a VeraSun report. Valero was the top bidder for the VeraSun assets in an auction earlier this week in Wilmington, Delaware.

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