Associated Press, Published September 02 2010
VeraSun asking farmers for repayment of fundsSIOUX FALLS, S.D. (AP) — Farmers who sold corn to bankrupt ethanol producer VeraSun Energy Corp. have been receiving letters asking for repayment of funds due to "bankruptcy preference."
The Iowa State University's Center for Agricultural Law and Taxation says the letters are telling growers who sold corn to VeraSun in the 90 days before it filed for Chapter 11 bankruptcy protection that they have until Sept. 30 to repay 80 percent of what VeraSun paid them for their corn.
National and state corn growers associations are telling their members they might have defenses and they should consult with an attorney.
Sioux Falls-based VeraSun filed for bankruptcy in October 2009 after tightening credit markets erased its lifeline to weather the swings in corn and fuel prices.
Copyright 2010 The Associated Press.