An northeast Iowa ethanol plant is up for auction, just months after opening a new facility on the west edge of Dyersville. Plant owner, VeraSun Energy Corporation, announced Friday that seven of its facilities will be sold as part of a bankruptcy court financing agreement.
City officials are optimistic about a new company taking over. Around 50 workers are employed at the Dyersville plant. VeraSun needs up to $12.3 million in additional funds to maintain its workforce and plant in Dyersville through April 30th, along with six other plant sites, including Albert City.
The auction process is set to begin March 16th, with sales closing by March 31st. While some area residents may be focusing on the turmoil, Dyersville Mayor Jim Heavens says city officials are optimistic about a new company taking over.
Mayor Heavens says it’ll be “a good thing” to get the plant in the hands of a company that is stronger financially and more diverse, that doesn’t have all of its assets wrapped up in just ethanol.
The company filed for Chapter 11 bankruptcy in October as credit markets froze and commodities such as corn and oil became extraordinarily volatile. Shortly thereafter, the plant closed temporarily.