By PETER HUSSMANN
Unit holders of Newton's biodiesel plant were told a recent mailing they received seeking taxpayer identification information as part of Central Iowa Energy's consolidation with REG was sent prematurely and should be disregarded, a letter from the plant's general manager states.
Shareholders of Central Iowa had been asked to return W-9 forms to Registrar and Transfer Company, the transfer agent hired by REG to assist with its consolidation with CIE. However, the letter dated Friday states, the transfer company sent the forms without the consent of either Central Iowa or REG.
"We hereby advise you to ignore the forms and discard the letter," Central Iowa plant manager Derek Winkel wrote in a letter filed with the Securities and Exchange Commission on Monday. "This information will be requested at the appropriate time at a later date. We apologize for the confusion that this premature mailing may have created."
Winkel goes on to note that the consolidation of Central Iowa with REG is still progressing, "albeit at a slower pace (than) was originally thought."
The SEC still needs to approve the registration statement and joint proxy statement for the proposed consolidation, Winkel said. Once approved, an informational meeting will be scheduled with Central Iowa unit holders and a special member meeting will be set to consider and vote on the proposed consolidation transaction.
Since Central Iowa Energy's start in April 2007, the company has generated net losses of $14.3 million.
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