Otter Tail one step closer to $62.5 million sale of ethanol plant

By Lisa Kerner

Charlotte, N.C., Jan. 27 - Otter Tail Ag Enterprises, LLC's bid procedures for the sale of its ethanol manufacturing plant to OTAV LLC for about $62.5 million or to the highest bidder were approved, according to a Thursday filing with the U.S. Bankruptcy Court for the District of Minnesota.

As previously reported, stalking horse bidder OTAV is a subsidiary of Green Plains Renewable Energy, Inc., North America's fourth-largest ethanol producer.

Competing bids are due Feb. 11, and an auction, if necessary, will be held on Feb. 16.

Otter Tail would pay OTAV a $1 million break-up fee and expense reimbursement of up to $100,000 if OTAV is not the highest bidder.

A sale hearing will be held on Feb. 17.

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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