Bruce Hendry and Glen Nelson, seeking permission that would allow them to bid on the property and to take possession of it free and clear of any liens.
While the court did grant the motion that would allow the sale of the property free and clear of any liens, the issue for determination at the December 1, 2004, hearing will be whether the mortgage holders (Hendry and Nelson) will be allowed to bid on the property in a manner that would leave the other creditors will no real hope of recovery.
I find it reprehensible that Hendry and Nelson would attempt to repurchase the property, but not surprising.
However, upon examination it is clear the property is going to be sold and liquidated to satisfy the creditors to the extent possible, leaving the property free and clear of all liens. This is pretty much standard operating procedure when a liquidation of the property is done by the courts. The money raised from the sale of the property will go to satisfy the liens. The $$$'s from the sale of the property will be divided against those who have liens. So the creditors will get some return, how much is determined by the sale price.
Now the issue is how fast and what sort of sale the court will order. Typically these sorts of things, or at least it is my understanding, are done on a date specified by the court and all interested parties are allowed to bid in an auction sort of setting until the highest price is obtained.
OBVIOUSLY, Hendry and Nelson will know when this date is and probably have money to make bids and probably outbid the property from anyone else who might want to purchase the property. OR, if Nelson and Hendry are not opposed at the sale they manage to buy it they can again go into operation or sell off the equipment and property at fire sale prices making more $$$$'s . Don't be surprised this happens all the time, it's how big money gets more money.
People wondered why I said, just cause they are in Bankruptcy doesn't mean they are done and dead and never gonna produce ethanol here again.... Here is exactly the scenerio that would allow such a thing to happen. Remember the permits to operate travel with the plant not the owners.
I hope the courts do find that Hendry and Nelson are guilty of mismanagement which lead to the bankruptcy and as such no allowed to bid on the property. OF course is there anything from them finding someone who will buy it for them, then sell it to them anyway or Bruce and Glen become partners with the new owner who owes Bruce and Glen the money they borrowed to buy the property?
As I said before and will continue to say, It ain't over till the equipment leaves the plant.
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Sincerely,
John Birrenbach
W 7th Neighborhood, St Paul MN
=== Political & Business Consulting ===
http://www.birrenbach.com/
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The Counter to Republican Radio http://www.airamericaradio.com/
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"Six years on the council has trained me to feign interest for long periods of time"
Chris Coleman Jan 21, 2004
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