Tenaska BioFuels Enters Agreement With Missouri Department of Agriculture To Permit Expedited Payments To Soybean Providers - 03/04/10
Tenaska BioFuels, LLC today executed an agreement with the State of Missouri Department of Agriculture relating to the State’s oversight of Prairie Pride, LLC, a soybean processing facility in Deerfield Missouri. The Circuit Court of Vernon County, Missouri placed Prairie Pride into trusteeship last week under the oversight of the State of Missouri Department of Agriculture due to Prairie Pride’s failure to pay certain soybean suppliers and its failure to fulfill the terms of its Missouri grain dealer’s license. The agreement will allow Tenaska BioFuels to assist the State in assuring that farmers and grain dealers that delivered soybeans to the Prairie Pride facility are paid in full. As part of the agreement, Tenaska BioFuels will pay approximately $2.5 million to the State Department of Agriculture, as trustee for Prairie Pride. That payment will then be allocated by the State to the sellers of soybeans previously sold to Prairie Pride and delivered to the facility. Also as part of the agreement, the State will release certain soybean meal and soybean oil inventory that are owned by Tenaska BioFuels and which are being held at the facility. Tenaska BioFuels has claims against Prairie Pride for nonpayment for soybean oil purchased by Prairie Pride from Tenaska BioFuels, and associated with Tenaska BioFuels’ termination of its contract with Prairie Pride. These claims will be pursued separately so as to not interfere with the State’s allocation of payments to soybean suppliers. Tenaska BioFuels has also learned that Prairie Pride has filed various court actions including a lawsuit against Tenaska BioFuels and a request for a temporary restraining order against the State and Tenaska BioFuels that would, if granted, stop the process of payment to soybean suppliers described above. Tenaska BioFuels is evaluating the litigation filed by Prairie Pride and will respond fully in the appropriate forum.