Liberty Mutual Wants VeraSun To Recover Bonds

Law360, New York (September 1, 2009, 4:25 PM EDT) -- Liberty Mutual Insurance Co. has asked a bankruptcy judge to reject ethanol producer VeraSun Energy Corp.'s disclosure statement and liquidation plan if it is not revised to recover surety bonds the insurer issued as part of VeraSun's operations.

In a motion filed Monday in the U.S. Bankruptcy Court for the District of Delaware, Liberty Mutual said that the disclosure statement submitted in early August calls for the transfer of surety bonds backed by the insurer to other entities, in violation of the Bankruptcy Code and the...
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