Otter Tail Ag Enterprises' disclosure statement gets court approval

By Lisa Kerner

Charlotte, N.C., June 14 - Otter Tail Ag Enterprises, LLC's disclosure statement was approved, according to a Monday filing with the U.S. Bankruptcy Court for the District of Minnesota.

A hearing to confirm the company's plan of reorganization is scheduled for Aug. 18.

As previously reported, under the plan Otter Tail's capital structure will be improved by a new equity drive seeking a $12 million investment.

Treatment of creditors will include:

• Holders of AgStar secured claims and NMF secured claims will be paid in full under modified credit agreement terms;

• Holders of U.S. Bank NA revenue bond indenture trustee claims will receive $2.5 million within 60 days of the plan effective date;

• Holders of Otter Tail County general obligation bond administrator claims will receive $751,250 within 60 days of the effective date;

• Holders of general unsecured claims and rejection claims will be paid at least 12.5% of their claims within 60 days of the effective date;

• Holders of unsecured convenience claims will be paid in full within 60 days of the effective date; and

• Equity interests will be cancelled.

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

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