Renew Energy indenture trustee objects to liquidation of ethanol plant

By Caroline Salls

Pittsburgh, June 3 - Renew Energy Holdings LLC indenture trustee U.S. Bank NA objected to the bid procedures for the proposed sale of substantially all of the company's assets, arguing that Renew's bank group wants to use the Chapter 11 process to complete a going-concern foreclosure sale, according to a Tuesday filing with the U.S. Bankruptcy Court for the Western District of Wisconsin.

"This is manifestly not the appropriate time to liquidate an ethanol plant if there is any reasonable alternative due to general economic conditions and the condition of the ethanol industry," U.S. Bank said in the objection.

The indenture trustee said it believes the company's ethanol plant could continue to operate in Chapter 11.

In addition, U.S. Bank said the proposed bid procedures would discourage competitive bidding because they do not include a stalking horse bid, lack any limitations on the rights of the company's bank group to place a credit bid and include an inadequate marketing period and an inappropriate marketing process.

According to the objection, U.S. Bank is the indenture trustee for Renew Energy's subordinate fixed-rate exempt facility revenue bonds.

Renew Energy, a Jefferson, Wis., ethanol producer, filed for bankruptcy on Jan. 30. Its Chapter 11 case number is 09-19491.

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