Renew Energy bidder asks court to reconsider asset sale approval

By Caroline Salls

Pittsburgh, Dec. 22 - Renew Energy LLC asset sale bidder ALL Fuels - Jefferson LLC asked the U.S. Bankruptcy Court for the Western District of Wisconsin to reconsider its approval of Renew's asset sale to Valero Renewable Energy Co., according to a Tuesday court filing.

According to the motion, several provisions of the court-approved bidding procedures were changed or disregarded during the auction, including provisions dealing with non-cash consideration and the discretion of bankers regarding the sale.

Specifically, ALL Fuels said loan commitments from Bankers Bank should not have been treated as non-cash consideration, discount information presented to qualified bidders was misleading, the rules established for the bank to govern the auction were unfair and partial to one party and the auction did not achieve the highest value for the assets being sold.

ALL Fuels said the rules were changed to give Valero a $5 million cash discount on the sale, to the detriment of Renew's estate.

"Bankers in effect used its influence to credit bid, although it had stated it would not," ALL Fuels said in the motion.

Renew Energy, a Jefferson, Wis., ethanol producer, filed for bankruptcy on Jan. 30, 2009. Its Chapter 11 case number is 09-19491.

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