Otter Tail Ag Enterprises, the 1-year-old ethanol plant on the northwest side of Fergus Falls, has defaulted on its $31 million dollar master loan agreement with Agstar Financial Services. Otter Tail Ag failed to pay the interest that was due on February 1, 2009 which caused the loan default according to the U.S. Securities and Exchange Commission. Furthermore, Otter Tail Ag Enterprises still owes $19.2 million for construction of its facility, a loan with MMCDC New Markets Fund, and they have also defaulted on its lease with Otter Tail County, totaling $26.1 million, by failing to make lease payments for use of the county’s solid waste facility. Otter Tail Ag Enterprises have been holding investor meetings throughout the week in Alexandria, Fergus Falls and Morris.
Anthony Hicks, Otter Tail Ag Enterprises CEO, said that he expects the ethanol industry will soon recover.
Just recently, VeraSun, the operator of various ethanol plants across the country, announced their bankruptcy. Ethanol plants in Janesville, MN and Hankinson, ND closed because of VeraSun’s bankruptcy.
For more information reguarding Otter Tail Ag Enterprises defaulting on its $31 million dollar loan, please visit the Minneapolis – St. Paul Business Journal by clicking here.