January 10, 2011
Green Plains Renewable Energy, Inc. (GPRE) announced today it has signed an asset purchase agreement with Otter Tail Ag Enterprises, LLC to acquire its 55 million gallon per year capacity dry-mill ethanol plant near Fergus Falls, MN. The proposed transaction is anticipated to progress through a court-approved bankruptcy proceeding initiated by Otter Tail Ag Enterprises, LLC. If confirmed by the Bankruptcy Court, Green Plains' bid would then be considered the stalking horse in an asset auction to be held in the next 60 days. There can be no assurances that Green Plains' bid will be the winning bid among qualifying bids.
"We remain focused on our growth strategy of acquiring operating assets that expand our ethanol platform and contribute immediately to our financial results," stated Todd Becker, President and CEO of Green Plains Renewable Energy. "If we are successful in the auction process, we believe our proven management capabilities will add value for all stakeholders."
If completed, the acquisition would increase Green Plains' ethanol production capacity by approximately 8% to an annual capacity of 712 million gallons. Green Plains plans to finance the transaction through a mix of available cash on hand and debt financing from existing lenders.
See Also :
Green Plains Renewable Energy Completes Acquisition of Global Ethanol, LLC
Green Plains Renewable Energy to Implement Corn Oil Extraction Technology
Green Plains Renewable Energy and BioProcess Algae to Break Ground on Phase II of Algae Project