US ethanol plant in Nebraska sold to Choice Ethanol Holding

23 January 2013 18:51  [Source: ICIS news]

HOUSTON (ICIS)--A northeast Nebraska ethanol plant owned by NEDAK Ethanol was sold at public auction this week to help repay defaulted loan agreements, according to US Securities and Exchange Commission (SEC) documents obtained on Wednesday.

The Atkinson, Nebraska, plant, which NEDAK Ethanol had idled in May, was sold on Tuesday to Choice Ethanol Holding of Fargo, North Dakota, for $22m (€17m) at a sheriff’s sale auction held at the Holt County Courthouse in O’Neill, Nebraska.

According to documents filed with the SEC, foreclosure proceedings were enacted because NEDAK Ethanol, also in Atkinson, Nebraska, is in default on its loan agreements with AgCountry Farm Credit Services and Arbor Bank. A 13 December SEC filing stated that NEDAK Ethanol owed an unpaid loan principal of more than $25m, as well as nearly $1m in accrued late charges and interest as of 9 October.

When operational, the Nebraska plant uses approximately 19m bushels of corn a year and produces approximately 51m gal (190m litres) of denatured fuel-grade ethanol.

Choice Ethanol Holding has not released information on its plans for the Nebraska plant.

($1 = €0.75)

By: Jeremy Pafford
+1 713 525 2653

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