VeraSun Energy files voluntary petitions for relief under chapter 11 to enhance liquidity - Quick Facts

(RTTNews) - VeraSun Energy Corp. (VSE) said on Friday that it and 24 of its subsidiaries have filed voluntary petitions for relief under chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware to enhance liquidity while they reorganize.

During the chapter 11 proceedings, VeraSun intends to resume normal operations. The company has taken steps to ensure continued supply of product to its customers and to fulfill all customer obligations. In that regard, VeraSun is working closely with its lenders and expects to reach an agreement before the "first day" hearing on Monday for additional committed financing to provide adequate liquidity to fund operations in the normal course.

The company anticipates that it will not scale back its purchases of raw materials, and corn and other suppliers will continue to be paid in full for all goods and services furnished after the filing date as required by the Bankruptcy Code. The company has also sought authority from the bankruptcy court to pay for goods delivered to the company on or after October 11, 2008.

VeraSun has also requested the bankruptcy court's approval to continue to pay employees in the ordinary course without interruption, and expects the request to be granted as part of the court's "first day" orders.

 

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