MDA Commissioner Gene Hugoson has joined agriculture officials across the Upper Midwest in urging farmers to consult with an attorney if they receive a notice informing them that they must repay money they received from corn sales to now-bankrupt ethanol producer VeraSun Energy Corp.
According to recent reports, some Midwestern corn growers have received letters telling them they have until September 30 to repay 80 percent of any payments for corn sold to VeraSun in the 90-day period before the company's bankruptcy filing on October 31, 2008. The letters cite provisions of federal bankruptcy law giving unsecured creditors in bankruptcy filings a second chance at any assets of the bankrupt firm.
"The best advice we can give to Minnesota producers who get this letter is to talk with a lawyer," says MDA Commissioner Gene Hugoson. "This is not something you should set aside or ignore."
The Minnesota Farmer Assistance Network can help producers get started on the process of responding to such letters. Producers with questions can contact MFAN at 1-877-898-6326 or get more information about the program and its services online at www.mda.state.mn.us/about/mfan.aspx