BioFuels Journal

By Jerry Perkins, editor, BioFuels Journal

On June 12, Green Plains, Inc. filed an 8K report with the U.S. Securities and Exchange Commission (SEC) regarding the bankruptcy proceedings involving Abengoa Bioenergy.

Jim Stark, vice president of investor and media relations for Green Plains in Omaha, NE, told BioFuels Journal in an email:

“We are the stalking horse opening bid on two plants (owned by Abengoa Bioenergy). We may or may not be the successful bidder.”

Here is the 8K report that Green Plains filed with the SEC on the bid:

“On June 12, 2016, Green Plains Inc. (“Green Plains”) entered into an asset purchase agreement (the “Agreement”) with Abengoa Bioenergy of Illinois, LLC (“AB Illinois”) and Abengoa Bioenergy of Indiana, LLC (“AB Indiana;” collectively with AB Illinois, the “Sellers”) to acquire AB Illinois’ business related to its Madison, IL ethanol plant and AB Indiana’s business related to its Mount Vernon, IN ethanol plant (collectively, the “Plants”) for aggregate consideration of approximately $200 million in cash, plus certain inventory, and the assumption of certain liabilities.

"The Plants have a combined annual production capacity of approximately 180 million gallons of ethanol.

"The Sellers and certain other affiliates have pending cases under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the Eastern District of Missouri (the “Bankruptcy Court”).

"The sale of the Plants under the Agreement is expected to be conducted under the provisions of Sections 105, 363 and 365 of the Bankruptcy Code and will constitute a stalking horse bid that will be subject to proposed bidding procedures and receipt of higher or otherwise better bids at the proposed auction for the Plants.

"If Green Plains is not the successful bidder at the auction, the Sellers must pay a break-up fee to Green Plains equal to $2.5 million per Plant plus reimbursement of expenses up to $500,000.

"The Agreement is also subject to a number of conditions, including among others, (i) the approval of the Bankruptcy Court in the Chapter 11 cases; (ii) the accuracy of the representations and warranties of the parties; (iii) material compliance with the obligations set forth in the Agreement; and (iv) customary regulatory approvals.

"Subject to the conditions in the Agreement, the transactions contemplated under the Agreement are expected to close in the third quarter of 2016.

"Green Plains intends to fund the purchase in cash.”

Final bids for the plant are due Aug. 18 with an auction scheduled for Aug. 22.

A bankruptcy court hearing on the winning bids will be held Aug. 29.

Green Plains currently operates 14 ethanol plants with a combined capacity of approximately 1.2 billion gallons a year, making it the fourth largest ethanol producer in North America.

See Related Websites/Articles:

• Green Plains Inc.

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