By PETER HUSSMANN
Shareholders of Central Iowa Energy, the financially-troubled Jasper County biodiesel plant, are being invited to an informational meeting early next month to hear details on the planned consolidation of the company with Renewable Energy Group of Ames.
In a Securities and Exchange Commission filing entered following the close of business on Friday, Central Iowa noted that it has set a special meeting for 6:30 p.m. on Wednesday, Feb. 3, at Newton High School to allow shareholders an opportunity to hear details on the proposed transaction. Representatives of REG, as well as CIE's financial advisers, will be on hand to give a presentation. Time will be allowed for shareholders to ask questions, the filing said.
The filing also stated that shareholders will vote on the proposed consolidation with Renewable Energy and Central Iowa's subsequent dissolution and liquidation at a special meeting on Feb. 17. The actions take separate votes of the shareholders.
Under the plan, REG will assume essentially all of Central Iowa's assets in exchange for the distribution of shares in the new company being formed by the consolidation. However, plans call for the shares to be used to satisfy outstanding claims owed by Central Iowa with distribution made only after those claims are satisfied.
In addition to assuming control of Central Iowa, REG is also involved in proposals to assume control of two other biodiesel plants, Western Iowa Energy and Blackhawk Biofuels.
Friday's SEC filing also included notification of REG's filing of a registration statement that included a definitive proxy statement. The proxy will be mailed to CIE shareholders in the near future.
The 300-page plus proxy statement includes a termination fees provision that would require Central Iowa Energy to pay REG $1 million in cash within 10 days should the agreement be terminated due to CIE's board of directors changing its favorable recommendation on the consolidation. Reverse termination fee provisions are also included favoring CIE shareholders.
Since its inception in 2007, Central Iowa Energy has lost $14.3 million from operations.