Iowa Biodiesel Plant Still Set to Be Auctioned, Despite Pending Sale
Gazette (Cedar Rapids, IA) -- November 12, 2009 -- A Keokuk biodiesel plant that its largest lender foreclosed on will be auctioned next month despite an earlier report that it had been acquired by a company based in Switzerland.PAID ADVERTISEMENT
The 5 million-gallon-per-year refinery opened in February 2006, the 11th biodiesel plant in Iowa.
But many biodiesel plants have struggled with difficult market conditions, which in recent years have included higher material costs and lower prices for their biodiesel output.
First Midwest Bank of Davenport, which had loans to the company for about $2 million, filed an action Oct. 15 in state court to collect on the delinquent debt.
Tri-City Energy announced a sale of the plant to BSFG of Zurich, Switzerland, on Oct. 29.
BSFG planned to buy TriCity through its TC Energy division in Keokuk.
The deal hasn't been consummated, and the lender is planning to go forward with the sale, the statement by Maas said, adding: "The mortgage is still in default, and the court-ordered auction is proceeding as planned." The sale process announced by Maas Companies will allow buyers to bid for the entire plant and real estate, or to bid separately for the plant and real estate. The lender is also willing to sell the plant's extensive lab separately.
Author: By Dave DeWitte, The Gazette, Cedar Rapids, Iowa, (319) 398-8317; david.dewitte@gazcomm.com
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