CIE notifies SEC of late filing

By PETER HUSSMANN

Officials with Central Iowa Energy, the Jasper County biodiesel plant proposed for consolidation under the umbrella of the Renewable Energy Group, told the Securities and Exchange Commission on Friday that its quarterly financial report would not be filed on time.

In a notification of late filing to the SEC, company officials said its financial results report would be late because the "Registrant is considering additional disclosures."

"The Quarterly Report on Form 10-Q will be filed no later than the fifth calendar day following the prescribed due date," Central Iowa officials stated in Friday's SEC filing.

The report covers the period ending June 30, 2009. The reports are due 45 days following the end of the quarter.

On Wednesday, beginning at 6 p.m. at the DMACC Sodhexo Conference Center, shareholders will gather for the company's annual meeting. At the end of the meeting, representatives of REG will be on hand to answer questions on the proposed consolidation.

The agreement provides for the sale of all of Central Iowa Energy's assets to Renewable Energy Group, currently the Newton biodiesel plant's management firm, in exchange for shares of stock in the new consolidated company. In addition, "certain liabilities" of Central Iowa Energy will be assumed by the new holding company.

Completion of the agreement, which also contemplates the consolidation of a Danville, Ill., and Wall Lake, Iowa biodiesel operations, is expected to be completed by late summer or early fall, according to information previously provided to investors. The asset purchase agreement is subject to shareholder and regulatory approval, as well as "numerous other conditions," including the assent of Central Iowa Energy's senior lender, F&M Bank.

In its two years of operations, Central Iowa Energy has recorded losses in excess of $11 million. It's latest quarterly report indicated that biodiesel production at the Newton plant had dwindled to 5 percent of its 30-million-gallon yearly nameplate capacity due to cash flow and liquidity problems.