Corn farmers facing millions in VeraSun refunds
In South Dakota, lawyers from collapsed VeraSun are demanding that farmers return 80 percent of payments received for corn delivered in 2008, in the 90 days prior to Vera Sun’s bankruptcy. Bankruptcy laws can require the return of all payments made in the final 90 days prior to a filing.
The legal move, which resulted in thousands of demand letters to farmers, has prompted a hastily convened meeting by the South Dakota Corn Grower’s Association, which is not a party to the dispute but is coordinating information and response from farmers as well as providing referrals for legal help. With prices in the $4-$8 range per bushel for corn in the height of the 2008 corn bubble, and VeraSun’s production capacity over 1 billion gallons per year, the demands for repayment could total as much as $5 billion.
Category: Fuels
