What is in this article?:
- VeraSun Corn Suppliers Must Take Action to Letter by Sept. 30
- Keep three things in mind
- Do not ignore this matter
- Seek advice of bankruptcy attorney
- Gather copies of all transaction documents
Iowans who received payment for corn or other services from VeraSun within 90 days of the company’s filing for bankruptcy on Oct. 30, 2008 received preference demand letters at the end of August. The letters came from one of two New York law firms and demand that the supplier return a percent of the payments received from VeraSun during that 90-day period.
While the letters and the legal issues surrounding them may be confusing, the advice given by legal experts at a meeting in Charles City on Sept. 16 was simple. Suppliers must respond to the preference demand letters by Sept. 30, 2010; they must take action now.
Iowa State University Extension held the Charles City meeting and one in Fort Dodge a week earlier to help farmers better understand the legal issues and the required response associated with the letters. For the convenience of those unable to attend either of the meetings, ISU Extension videotaped the Charles City session.