Otter Tail Ag Enterprises statement approved; plan hearing Aug. 10

By Caroline Salls

Pittsburgh, June 9 - Otter Tail Ag Enterprises, LLC received court approval of the disclosure statement for its plan of liquidation, according to a Thursday filing with the U.S. Bankruptcy Court for the District of Minnesota.

The plan confirmation hearing is scheduled for Aug. 10.

As previously reported, the company originally filed a plan of reorganization in 2010.

However, that plan was contingent on the company' raising $12 million of new equity, which it failed to do.

As a result, Otter Tail sold substantially all of its fixed assets. The $60.11 million sale closed on March 24.

After payment of lender claims and sale expenses and a settlement payment, the company said it would have $2.5 million remaining to fund the liquidation plan.

Treatment of creditors will include:

• Holders of administrative expense claims, professional claims and priority tax claims will be paid in full;

• Holders of general unsecured claims will receive a share of liquidation proceeds; and

• Equity interests will be cancelled, and holders will receive no distribution.

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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