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Published September 09, 2009, 08:30 AM

N.D. Public Service Commission moves to resolve ethanol plant insolvency

North Dakota’s Public Service Commission is moving to streamline an insolvency case against a Hankinson ethanol factory that is already under bankruptcy protection. The commission wants a federal bankruptcy judge to allow it to be appointed trustee of VeraSun Energy Corp.’s grain storage facilities at Hankinson.

BISMARCK (AP) — North Dakota’s Public Service Commission is moving to streamline an insolvency case against a Hankinson ethanol factory that is already under bankruptcy protection.

The commission wants a federal bankruptcy judge to allow it to be appointed trustee of VeraSun Energy Corp.’s grain storage facilities at Hankinson.

VeraSun’s bonding company has resisted the move. Public Service Commissioner Tony Clark said the company recently agreed to support the commission’s request, if the PSC agreed not to make an immediate claim on the $380,000 bond.

The commission voted Tuesday to give its attorneys permission to work out the agreement. Clark said it would allow the PSC to administer the insolvency case and advertise for possible claims against the bond, although it does not yet allow any payments to creditors.

Two farmers have already filed claims against VeraSun. They said the company owes them money for corn deliveries to the facility. The factory processed corn to make ethanol.

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