Proposed Legislation Helps Farmers in Chapter 11 Battles

DTN writer Todd Neeley reported today that, “On Oct. 11, 2008, one of the nation’s largest ethanol producers, VeraSun Energy, filed for Chapter 11 bankruptcy protection. The action left thousands of farmers who sold corn to the South Dakota company’s ethanol plants at a loss.

“What compounded those losses, attorney Joseph A. Peiffer said, is the producers he represented were faced with VeraSun filing bankruptcy in the state of its incorporation, Delaware.

“Though legal, the move by VeraSun left many Iowa farmers facing the prospects of having to fight a legal battle in a distant state. This made it costly and logistically difficult for farmers to succeed.”

The DTN article explained that, “Peiffer, now a shareholder in Ag and Business Legal Strategies based in Hiawatha, Iowa, has drawn the attention of Washington lawmakers who next week are set to introduce a bill in the United States Senate that would forbid companies from filing bankruptcy in states of their incorporations.”

Mr. Neeley added that, “Sens. John Cornyn, R-Texas, and Elizabeth Warren, D-Mass., are set to introduce the Bankruptcy Venue Reform Act of 2018 next week.”

This entry was posted in Agriculture Law, General Interest, Real Estate Law. Bookmark the permalink. Both comments and trackbacks are currently closed.