Western Iowa Energy says no to REG sale

Newton Independent

Unit holders of Western Iowa Energy in Wall Lake voted against Renewable Energy Group's proposal to purchase the biodiesel facility, one of three struggling plants the Ames-based firm was in negotiations to buy.

The negative vote of its shareholders went against the recommendation of its board of directors.

Last week, unit holders of Central Iowa Energy, the financially-troubled Newton biodiesel plant, agreed to sell virtually all of the company's assets and liabilities to REG as part of an asset purchase agreement first proposed last May.

Members of Blackhawk Biofuels in Danville, Ill., also agreed to a sale. All three entities are managed by REG.

Since its inception in 2007, Central Iowa Energy has incurred loses totaling $14.9 million.