Glacial Lakes Corn Processors shores up finances

By Anna Austin | January 03, 2009
Web exclusive posted Dec. 4, 2008 at 4:06 p.m. CST

South Dakota-based Glacial Lakes Corn Processors, the parent company of Glacial Lakes Energy LLC, announced Nov. 26 that it had collected $10 million from shareholders as part of a company recapitalization plan.

In early November, Glacial Lakes Corn Processors held a membership meeting to present the need for working capital to restore the company's financial stability, which includes raising $11.3 million of equity from members through a $0.06 per share unit retain capital call, and the release of up to $8 million of cash and collateral sale proceeds currently being held in escrow or subject to liens by the company's bank group.

Glacial Lakes Corn Processors reported that as of Nov. 25, it had collected close to 88 percent of its capital call from 84 percent of its members, and received written consent to the credit request from every bank group member. "There has been an overwhelming response from our shareholder members and we are very pleased with the manger in which our investor/owners have stepped in to maintain control of their company," said Jim Seurer, Glacial Lakes Corn Processors' interim chief executive and chief financial officer.

Seurer said the company has refocused on a "back to basics" approach, and its directors and employees are unified in their commitment to the company and its survival.

In October, the company reported that Glacial Lakes Energy's 110 MMgy ethanol facility in Mina, S.D., which began operations only a month prior, would shut down in order to recover from "significant losses." These included weather-related harvest delays, negative impacts that the declining corn market had on the market value of the company's hedge positions, and production challenges resulting from mechanical issues. The facility recently resumed full operations.

Glacial Lakes Corn Processors also has a site secured near Meckling, S.D., for an additional ethanol facility. Although dirt work has been completed, the project has been put on hold until market conditions improve, according to the company.

To learn more about Glacial Lakes Energy and Glacial Lakes Corn Processors, visit www.glaciallakesenergy.com.