By PETER HUSSMANN
Investors in Newton's biodiesel plant, Central Iowa Energy, will meet next Wednesday to vote on a plan to consolidate its operations with Renewable Energy Group, one of three consolidations the Ames-based company and largest supplier of biodiesel in the U.S. hopes to have completed by the end of the month.
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 shares to be used to satisfy outstanding claims owed by Central Iowa with proportionate distribution of the new company's shares made only after those claims are satisfied.
At least one outstanding claim has now been satisfied. On Dec. 31, Central Iowa paid its delinquent September county tax bill of $123,721 plus $5,567 in accrued interest.
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 in Wall Lake and Blackhawk Biofuels in Danville, Ill. REG currently manages the operations of all three plants.
Since beginning production in 2007, Central Iowa has lost $14.3 million from operations.
Recent Comments