VeraSun Plan Doesn't Protect Grain Growers: Liberty

Law360, New York (October 19, 2009, 6:20 PM EDT) -- Liberty Mutual Insurance Co. has objected to bankrupt ethanol producer VeraSun Energy Corp.'s proposed liquidation plan, saying it gives senior lenders liens on grain that should belong to the farmers that grew it.

In an objection filed Friday in the U.S. Bankruptcy Court for the District of Delaware, Liberty said that the plan wrongly gave senior lenders liens on grain delivered to VeraSun or its subsidiaries by growers that hadn't been paid for it. The plan will not be confirmable until it gives those growers, who...
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