VeraSunEnergy Receives Bankruptcy Court Approval for $196.6 Million in Debtor-in-Posession Financing

GrainNet.com
Date Posted: December 5, 2008

Sioux Falls, SD—VeraSun Energy Corporation announced that the U.S. Bankruptcy Court has entered orders granting final approval for debtor-in-possession (DIP) financing totaling $196.6 million, including $93.6 million of incremental financing, $25 million of which was previously loaned to the Company on an interim basis, to be provided by certain holders of VeraSun’s 9 7/8% senior secured notes due 2012.

The incremental financing will be available, subject to certain conditions, to fund operations at ethanol production facilities in Aurora, South Dakota and Fort Dodge, Charles City and Hartley, Iowa and to maintain the idled Welcome, Minnesota facility.

The balance of the financing consists of approximately $103 million used to refinance prepetition loans that had been made by the noteholders who participated in the DIP financing.

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