Advanced BioEnergy to Sell 2 Plants
Company Plans to Sell 2 South Dakota Ethanol Plants
OAKHURST, N.J. (DTN) -- Advanced BioEnergy LLC announced that, together with its subsidiary ABE South Dakota LLC, it has entered into agreement to sell its Aberdeen and Huron, South Dakota, ethanol plants to Glacial Lakes Energy LLC for $47.5 million plus the value of ABE inventory at the time of closing.
The company will continue to operate its two ethanol plants at Huron and Aberdeen, with a combined production capacity of 86 million gallons per year, until the transaction closes, which is expected in the third quarter.
In connection with the sale, the company will be adopting, subject to ABE unitholder approval, a plan of liquidation under which the company will be liquidated and the proceeds of the sale will be distributed to unitholders, after payment of the company's outstanding debt, transaction-related expenses and other expenses related to the plan of liquidation.
On Feb. 26, the company announced that it had begun exploring strategic alternatives for its business operations, including the possibility of a sale of one or both of its ethanol plants, and retained Ascendant Partners Inc. to advise it in this process and help evaluate the opportunities and options available to the company.
(AG)
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