Released November 21, 2008
AMES, Iowa – The Chapter 11 bankruptcy filing on Oct. 31 by Verasun Energy and its 24 subsidiaries has drawn an objection from a group of approximately 100 farmers on how the ethanol producer is proposing to manage its contracts to buy corn from farmers, according to Roger McEowen, who directs the Center for Agricultural Law and Taxation at Iowa State University.
McEowen said VeraSun filed a motion on Nov. 14 to establish a procedure for assumption or rejection of contracts it has made for future corn purchases. Unfortunately, it does not set a deadline by which VeraSun will have to assume or reject contracts. The motion filed Nov. 21 objects to VeraSun’s motion and asks 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 Dec. 2 in the United States Bankruptcy Court for the District of Delaware where VeraSun has its corporate headquarters.
More information on the legal questions involved and the impact of the bankruptcy on Iowa corn producers is available at the Center for Agricultural Law and Taxation Web site, http://www.calt.iastate.edu.
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http://www.extension.iastate.edu/news/2008/nov/062102.htm
Contact: Roger McEowen, (515) 294-5217, mceowen@iastate.edu
Tiffany Kayser, (515) 294-5217, tlkayser@iastate.edu