Otter Tail seeking equity investment interest from Minnesota members

By Caroline Salls

Pittsburgh, Dec. 31 - Otter Tail Ag Enterprises, LLC is soliciting interest from current members residing in Minnesota in connection with a potential registered intra-state equity investment offering, according to an 8-K filed Thursday with the Securities and Exchange Commission.

According to the letter, Otter Tail has agreed to raise an additional $10 million to $12 million of equity by selling new class B membership units to its existing members and potentially to non-members.

The units will be offered at $0.50 per unit, or 25% of the original class A membership unit offering price.

Otter Tail said participating in this new offering is the only opportunity for existing members to continue as owners of the company.

The company said it will not ask any member to make a binding commitment to invest until a plan has been filed with the U.S. Bankruptcy Court for the District of Minnesota.

However, Otter Tail said it has agreed to have indications of interest for at least $6 million of investments by Jan. 15.

Otter Tail, a Fergus Falls, Minn., ethanol company, filed for bankruptcy on Oct. 30. Its Chapter 11 case number is 09-61250.

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