Guardian Energy to purchase Janesville, Minn.-based ethanol plant

By Erin Voegele | July 08, 2009
Report posted Aug. 4, 2009 at 5:00 p.m. CST

On Aug. 4, AgStar Financial Services' lending group announced that Shakopee, Minn.-based Guardian Energy LLC has entered into an agreement to purchase its Janesville, Minn., ethanol plant. The 100 MMgy facility was acquired by AgStar's lending group through VeraSun Energy Corp.'s March 2009 bankruptcy.

Guardian Energy, a wholly owned subsidiary of Guardian Eagle Investments, was formed to own and operate the Janesville ethanol plant. A binding purchase agreement has been signed and the sale is expected to close by September 15.

This purchase agreement represents the AgStar lending group's fourth VeraSun ethanol plant sale. According to AgStar spokesman Jim McKissick, sales are now complete on three of the six VeraSun ethanol plants the group acquired. In addition, he said that AgStar's lending group expects to have purchase agreements in place for the remaining plants by early August.

According to information released by AgStar, an announcement will be made later this week regarding the signing of a purchase agreement for the Dyersville, Iowa, ethanol plant. McKissick said AgStar's lending group also expects to make an announcement regarding the sale of the Hankinson, N.D., facility in the near future.

"Although these sales may have taken longer than expected we're satisfied that the outcome is consistent with the plan we had when we acquired these plants," said Paul DeBriyn, AgStar's president and CEO.

McKissick also said AgStar's lending group is expected to make an announcement later this week regarding the fate of a Fergus Falls, Minn.-based ethanol plant. That plant, which is owned by Otter Tail Ag Enterprises, currently owes $61.5 million to AgStar's lending group. Repayment on that debt is due by Aug. 7. "We're having conversations with their leadership team as we speak," McKissick said. "And I know that we expect some news to come out of that either tomorrow or later in the week."