CONTACT: Geoff Greenwood,
FOR IMMEDIATE RELEASE,
September 30, 2010
Miller Urges VeraSun Corn Suppliers to Withhold Response and Payment, Due to Late Developments
(DES MOINES, Iowa) Attorney General Tom Miller advises anyone who is in the process of responding to preference demand letters, or is in the process of remitting payment, in conjunction with VeraSun Energy Corporation bankruptcy proceedings, to immediately withhold their response and payment.
Late Thursday afternoon, the Attorney General was made aware that the parties seeking payments have apparently suddenly withdrawn their Notice of Preference claim with a number of groups of individuals. The Attorney General has been unable to confirm the information directly, but has confirmed that claims and demands against a number of corn producers have been withdrawn.
Late in August, two New York-based law firms sent letters to those who received payment for corn or other services from VeraSun Energy within 90 days of the company’s filing for bankruptcy, to respond to their preference demand letters by today, September 30. Last week, Miller recommended that those affected act quickly and respond.
Because of the apparent withdrawal of the demand, Miller now recommends that anyone who has yet to respond withhold their response and withhold any payment that may be pending. “The company has not yet responded to our request for confirmation, so to be on the safe side I think it’s most prudent for those who received these demand letters to hold off,” Miller said. “If you sent a check that has not yet been processed, you should consider canceling the check,” Miller said.
VeraSun is a Sioux Falls-based renewable fuel manufacturer which filed for Chapter 11 bankruptcy protection on October 30, 2008. The company purchased corn from farmers and grain elevators for its 16 plants in Iowa and seven other states. The Iowa plants were located in Albert City, Charles City, Dyersville, Fort Dodge and Hartley.
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