Judge Rules VeraSun Can Cancel Corn Contracts
US Bankruptcy Judge Brendan Shannon ruled Tuesday that chapter 11 bankruptcy case VeraSun Energy Corp. can cancel contracts to buy corn through Jan. 15, if VeraSun gives 10 business days notice before delivery to cancel the said purchase contracts.
VeraSun said that the contracts relate mostly to buy corn for its U.S. BioEnergy plants. The company would also cancel contracts to buy corn for its Welcome, Delaware, plant through Jan. 31, but that contracts for its U.S. BioEnergy plant in Marion, South Dakota, were not included in the cancellation plans, the company said.
VeraSun lawyers said all eight of its U.S. BioEnergy plants, which were acquired earlier this year for less than $700 million, were in "hot idle," or ready to operate but not currently producing ethanol.
VeraSun said that the contracts relate mostly to buy corn for its U.S. BioEnergy plants. The company would also cancel contracts to buy corn for its Welcome, Delaware, plant through Jan. 31, but that contracts for its U.S. BioEnergy plant in Marion, South Dakota, were not included in the cancellation plans, the company said.
VeraSun lawyers said all eight of its U.S. BioEnergy plants, which were acquired earlier this year for less than $700 million, were in "hot idle," or ready to operate but not currently producing ethanol.
