VeraSun - Corn Farmers' Case for Venue Reform

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On October 31, 2008, during the height of corn harvest season, VeraSun Energy, the nation's largest ethanol company with headquarters in Sioux Falls, South Dakota and having 17 plants in 8 Midwestern states filed its Chapter 11 bankruptcy in Wilmington, Delaware.  Over 7,800 corn contract holders were listed as creditors, with approximately 6,000 of them from Iowa.  The filing caused havoc for the corn farmers who had planned to sell their corn to VeraSun pursuant to corn procurement contracts.  The bankruptcy allowed VeraSun to determine whether to assume or reject the contracts through the date of confirmation of its plan, while the farmers were not allowed to sell their corn elsewhere without running the risk that if the market improved VeraSun could demand that the corn farmers honor their contracts.  VeraSun was allowed to file its bankruptcy in Delaware as one of its affiliates was organized in Delaware, therefore, all related companies could also file bankruptcy in Delaware.  If the case had been filed in Sioux Falls, South Dakota, the farmers could have taken part in the bankruptcy in a meaningful way, which was not possible with the case having deliberately been filed over 1,100 miles from the corporate headquarters in Sioux Falls, South Dakota.

http://www.peifferlaw.com

YouTube url:	https://www.youtube.com/watch?v=7GdifLvuRdw
Created:	2. 3. 2017 01:28:34

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VeraSun - Corn Farmers' Case for Venue Reform