Otter Tail: court vacates order, re-approves use of cash collateral

By Lisa Kerner

Charlotte, N.C., Oct. 25 - The U.S. Bankruptcy Court for the District of Minnesota vacated its Oct. 12 order authorizing Otter Tail AG Enterprises, LLC to use cash collateral through Dec. 31 because an attachment was inadvertently omitted, according to a Monday court filing.

However, the court ordered that Otter Tail, based on the consent of the pre-petition lenders, is authorized through Dec. 31 to continue to use cash collateral to fund expenses in an itemized budget included with the court's Monday order.

Otter Tail's use of cash collateral is limited to actual weekly disbursements on a line item basis that don't, without further consent by the pre-petition lenders, exceed 10% of the budgeted amounts excluding input commodities such as com, natural gas, electricity and other chemicals used for the production of ethanol.

In addition, Otter Tail is not permitted to contract to purchase input commodities such as com, natural gas, electricity and other chemicals used for the production of ethanol for prices 10% or more above fair market prices without the pre-petition lenders' consent.

Otter Tail, a Fergus Falls, Minn., ethanol company, filed for bankruptcy on Oct. 30, 2009. Its Chapter 11 case number is 09-61250.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.