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VeraSun to farmers: Pay us back

Omaha World-Herald -- Nebraska farmers who sold corn to the former VeraSun Energy Corp. have been receiving notices from law firms in New York demanding that they pay back any money received from VeraSun 90 days prior to the company filing Chapter 11 bankruptcy Oct. 31, 2008.

The money is to be returned to the bankruptcy-reorganized VeraSun.

VeraSun operated ethanol plants in Ord, Central City and Albion.

An informational meeting is planned for 7 p.m. Wednesday at the Valley County Fairgrounds in Ord.

Farmers and any other corn suppliers or vendors need to respond to the notices in order to avoid losing their rights or defenses by default, said Tom Kruml of Stowell, Kruml & Geweke, a law firm in Ord.

More than $100 million could be at stake.

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Submitted Sep 03, 2010 By: PhilMils

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NekoSJG Champion Author San Jose Posts:3,230 Points:570,805 Joined:Jun 2010	Message Posted: Sep 4, 2010 2:09:22 PM Ignore NekoSJG Report Abuse Yeah - when the bankers make a loan they become 'secured' while everyone else is second or third class (ie unsecured) when it comes to getting money from a reorg. For the farmer keep the money and never do business with ethanol again. Why should the primary suppliers have to directly subsidize ethanol? One possible solution is to have tiered prices. Corn that sells for food gets one price while corn that is of lower quality could go for ethanol and is sold as is - no contracts.
kkimes All-Star Author Illinois Posts:683 Points:1,092,465 Joined:Sep 2005	Message Posted: Sep 3, 2010 10:00:20 PM Ignore kkimes Report Abuse After reading the article, I still don't understand why the farmers who sold their corn and received payment should have to return any money. It sounds like they want the farmers to give the money back and become creditors owed money by a bankrupt company. But, of course, they won't get anything back because the court will give the money to other creditors who are considered more important than the farmers.
OHMS Champion Author Orange County Posts:10,797 Points:1,250,520 Joined:May 2005	Message Posted: Sep 3, 2010 1:38:00 PM Ignore OHMS Report Abuse sorry; they spent it on diesel oil for their farm vehicles.
orestroker Champion Author Portland Posts:1,080 Points:880,145 Joined:Mar 2008	Message Posted: Sep 3, 2010 1:24:21 PM Ignore orestroker Report Abuse It looks like corn ethanol cuts both ways.
sabob Champion Author Pennsylvania Posts:7,420 Points:675,840 Joined:Dec 2008	Message Posted: Sep 3, 2010 12:45:19 PM Ignore sabob Report Abuse Sucks to be a farmer as long as there are lawyers
batloverNM Champion Author Albuquerque Posts:3,216 Points:1,168,800 Joined:Oct 2007	Message Posted: Sep 3, 2010 12:32:32 PM Ignore batloverNM Report Abuse If Vera Sun wants its money back they need to give the farmers their corn back. This is stupidity beyond belief!!! Oh wait, if lawyers are involved the will come up with many more stupid things in the future.
RochBear Champion Author Minnesota Posts:8,447 Points:1,437,455 Joined:May 2006	Message Posted: Sep 3, 2010 12:27:35 PM Ignore RochBear Report Abuse The farmers delivered corn, and got paid for it. If they are to return the money, then VeraSun needs to return the corn! oh, wait, that's not part of the agreement, then forget it. As a farmer, I'll return the money, after the lawyers, stop getting paid!
ziyulu Champion Author Oklahoma City Posts:6,108 Points:1,160,725 Joined:Aug 2007	Message Posted: Sep 3, 2010 12:15:28 PM Ignore ziyulu Report Abuse This isn't Wal-Mart, where you can bring back something and get your money back.
PhilMils Champion Author Virginia Posts:4,846 Points:948,785 Joined:Dec 2008	Message Posted: Sep 3, 2010 12:00:44 PM Ignore PhilMils Report Abuse In this case, it isn't the government at fault, but the leeches, err, corporate lawyers.
BIGOILEATURCRUD Champion Author North Carolina Posts:2,968 Points:914,460 Joined:Nov 2008	Message Posted: Sep 3, 2010 11:56:15 AM Ignore BIGOILEATURCRUD Report Abuse Give the farmers their corn back!
Night Owl Champion Author Toronto Posts:5,265 Points:1,333,725 Joined:Jul 2004	Message Posted: Sep 3, 2010 11:46:24 AM Ignore Night Owl Report Abuse Yet another example of why corn-based ethanol is not an answer.
uglytom Champion Author Florida Posts:5,678 Points:1,188,960 Joined:Jul 2007	Message Posted: Sep 3, 2010 11:08:44 AM Ignore uglytom Report Abuse The lawyers always try to suck blood from stones!
52MPG Champion Author Dayton Posts:4,909 Points:1,277,505 Joined:Apr 2006	Message Posted: Sep 3, 2010 11:08:29 AM Ignore 52MPG Report Abuse Only an out of control government could come up with laws like this.
bar1035 Champion Author Charlotte Posts:5,819 Points:833,070 Joined:Aug 2006	Message Posted: Sep 3, 2010 11:07:24 AM Ignore bar1035 Report Abuse Alas , you reap what you sow. the farmers sold it high (who can blame them), the company went bust, the law works against the innocent in favor of business (mostly lawyers that run our country)
fullcirclethink Champion Author Washington Posts:1,528 Points:118,815 Joined:Jun 2009	Message Posted: Sep 3, 2010 11:04:26 AM Ignore fullcirclethink Report Abuse If we needed any further evidence that ethanol is a dismal, forced upon us by the government, failure......THIS IS IT!!!!!!!!!!!!
teafortwo Champion Author Washington Posts:15,335 Points:923,215 Joined:Feb 2009	Message Posted: Sep 3, 2010 11:01:29 AM Ignore teafortwo Report Abuse ~ Now I believe I have heard everything.
BMW2014 Champion Author Toronto Posts:1,794 Points:364,300 Joined:Jun 2010	Message Posted: Sep 3, 2010 10:59:27 AM Ignore BMW2014 Report Abuse Utter nonsense.
tarheelcoastie Champion Author Greensboro Posts:3,008 Points:662,745 Joined:Jan 2009	Message Posted: Sep 3, 2010 10:24:29 AM Ignore tarheelcoastie Report Abuse Someone needs to inform the farmers of the right thing to do here. This is part of the reason I HATE ethanol as it is only propped up by government subsidies and tax credits.
PhilMils Champion Author Virginia Posts:4,846 Points:948,785 Joined:Dec 2008	Message Posted: Sep 3, 2010 9:46:24 AM Ignore PhilMils Report Abuse This is another ethanol failure. I'll side with the farmers.