By PETER HUSSMANN
Jasper County's financially reeling biodiesel plant lost more millions of dollars than gallons of renewable fuel produced last fiscal year, documents filed with the Securities and Exchange Commission after the close of business Monday indicate.
Central Iowa Energy filed its year-end financial statement that showed the company incurred a net loss of $7.9 million for the year ended Sept. 30. For the fiscal year, the Newton plant produced just over 5 million gallons of biodiesel or just 17 percent of its 30 million gallon yearly production capacity.
Since the facility's start in April 2007, the company has generated net losses of $14.3 million.
The federal filing shows the company is out of compliance with nearly all terms of its financing agreements with its lender, Ag Star Financial Services (which purchased the interests of its former lender F&M Bank), has received notice of default on loans from the Iowa Department of Economic Development for falling short of its job creation requirements, is being required by the Iowa Department of Revenue to repay nearly $76,000 in sales tax refunds, could be on the hook to repay Jasper County approximately $745,000 for construction of sewer improvements to the plant and did not pay its most recent property tax installment of approximately $124,000.
Monday's SEC filing also made note of Central Iowa's entry last week into a second amended and restated Asset Purchase Agreement between the county biodiesel plant and Renewable Energy Group. The agreement, which extends the termination date for the transaction to be complete until Feb. 28, 2010, calls for REG to assume virtually all of the assets of Central Iowa in exchange for shares of a new company to be formed by REG. Shares of the new company will be distributed to Central Iowa unit holders in correlation to their holdings, though some shares may be held back as deemed necessary to satisfy claims against or liabilities of the company.
The SEC filings on the company's year-end results can be found here.
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