Nebraska Grain and Feed Association
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NE Grain & Feed

VERASUN SEEKS MILLIONS PAID FOR CORN, SUPPLIES

 

Verasun, the former owner/operator of ethanol plants around the country, and who went bankrupt in October, 2008, has sent letters to farmers, grain handlers and other suppliers demanding the repayment of millions of dollars they paid these individuals and companies up to 90 days before their bankruptcy filing for corn, equipment, supplies, etc.

If you received one of these letters, we want to stress how significant this is.  Do not ignore the letter, you must respond, but don't sign anything until you consult legal counsel.  Following is some "informal" information regarding this matter. 

First, these letters are a standard practice for debtors to send in situations like this.  No one should assume that the law firm that sent these letters has done much research to determine if any of the individual payments received for corn, etc, were preferential or unusual in nature, as required by the statute.  

Second, the analysis of the claim by the debtor (Verasun) can be complex.  In addition this can be a lengthy process, and given the large number of claims sent to suppliers across the country, it will undoubtedly be even more complex than a more normal situation. 

This is not intended as legal advice, and clearly legal counsel should be consulted.  This e-mail should not serve as any indication of a final resolution or solution.  Each situation will be different, and it is unlikely that any two situations are exactly the same.  Each company involved should get all their records together for the past couple of year’s business with Verasun, and then seek individual legal advice.

Assuming the payments received were for current purchases in the ordinary course of business, it could be difficult for Verasun to ultimately prevail, assuming those that receive these letters mount an aggressive and proper legal defense! 

 

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August 4, 2017

NeGFA Summer Meeting & Golf Outing

York Country Club

York, NE

 

 

 

 

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Nebraska Grain and Feed Association
4600 Valley Road, Suite 416
Lincoln, NE 68510-4844
Phone: 402-476-6174
Fax: 402-476-3401