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AgStar Lending Group hires ICM to manage ethanol plants

Fri, Apr 3rd, 2009
Posted in Business Announcements

Management company will keep plants in 'idle mode'

AgStar Financial Services' lending group announces ICM, Inc. has been retained to manage the six ethanol plants the lending group recently acquired through the VeraSun Energy bankruptcy. ICM is overseeing plant maintenance while the plants remain in 'idle mode.' Securing ICM to manage plant operations will ensure a smooth transition for the eventual buyers of the plants.

"Our objective in retaining ICM is to maintain a positive environment ensuring all the plants are kept in top condition," stated Paul DeBriyn, president and CEO of AgStar Financial Services. ICM will also provide human resource services to plant personnel during this transition period. Engaging ICM allows for a quick start-up if desired.

Due to regulations, AgStar and the lending group (comprised of 16 other lenders) are not allowed to operate the plants. "ICM has the experience and the industry expertise we were looking for to provide a seamless transition to the new owners of these plants," mentioned DeBriyn. "Retaining this company has been part of our plan - with our ultimate goal of having new owners purchasing corn and making ethanol soon."

ICM is pleased to work with the lending group to provide management services for these six ethanol plants. "With ICM's process technology behind over 100 ethanol plants in North America, our focus on excellence and innovation allows us to apply our vast biofuels industry experience and efforts by supporting the AgStar lending group in this critical endeavor," said Dave Vander Griend, ICM president and CEO.

The AgStar-led lending group expects to close on the purchase of the six VeraSun plants by the second week of April. AgStar continues to receive ample interest in the plants from potential buyers and is working towards selling these plants to new owners in the next 60-days. "Our priority is to protect the interests of our stockholders and get these plants in the hands of better-capitalized owners as quickly as possible," stated DeBriyn. These six state-of-the-art plants are located in five upper-Midwest states and are capable of producing 470 million gallons of ethanol annually.

For more information regarding the VeraSun Energy's bankruptcy please see www.agstar.com.

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