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Renew Energy bidder's sale approval reconsideration request denied
By Caroline Salls
Pittsburgh, Jan. 20 - Renew Energy LLC asset sale bidder ALL Fuels - Jefferson LLC's motion for reconsideration of the court order approving the sale of Renew's assets to Valero Renewable Energy Co. was denied Tuesday by the U.S. Bankruptcy Court for the Western District of Wisconsin.
According to ALL Fuels' motion, several provisions of the court-approved bidding procedures were changed or disregarded during the auction, including provisions dealing with non-cash consideration and the discretion of bankers regarding the sale.
Specifically, ALL Fuels said loan commitments from Bankers Bank should not have been treated as non-cash consideration, discount information presented to qualified bidders was misleading, the rules established for the bank to govern the auction were unfair and partial to one party, and the auction did not achieve the highest value for the assets being sold.
ALL Fuels said the rules were changed to give Valero a $5 million cash discount on the sale, to the detriment of Renew's estate.
"Bankers in effect used its influence to credit bid, although it had stated it would not," ALL Fuels said in the motion.
According to Tuesday's ruling, ALL Fuels failed to present new evidence that would warrant reconsideration and "failed to demonstrate a manifest error of law or fact or a change in the controlling law that would warrant reconsideration."
As previously reported, Renew and Valero agreed not to close on the asset sale until after the hearing on the reconsideration motion.
Renew Energy, a Jefferson, Wis., ethanol producer, filed for bankruptcy on Jan. 30, 2009. Its Chapter 11 case number is 09-19491.
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