ICM to purchase Abengoa Bioenergy’s Kansas plant
ICM, a US ethanol dryer specialist, has announced that it has successfully bid to purchase Abengoa’s Kansas plant.
The deal was conducted under the provisions of the US Bankruptcy Code. The company will purchase the shuttered Colwich ethanol facility and property for $3.1 million (€2.7m).
“ICM values this location in Colwich, Kansas, and we are evaluating the best way to exercise that opportunity,” said Dave VanderGriend, founder and CEO of ICM. “We continue to focus our efforts on developing solutions that deliver value-added product streams to the renewable energy industry.”
The company's acquisition agreements are subject to review and approval by the US Bankruptcy Court for the Eastern District of Missouri at a hearing currently scheduled for 29 August, 2016. The acquisitions are expected to be complete no later than 30 September, 2016, subject to regulatory approval and customary closing conditions, at which time the asset will be offered to ICM.
This news is the latest in the line of Abengoa plant purchases.
Earlier this week, US biofuels specialist Green Plains announced that it was the successful bidder on three ethanol plants for sale by Abengoa Bioenergy conducted under the provisions of the US Bankruptcy Code.
The company will purchase three US-based plants including the Madison, Illinois, Mount Vernon, Indiana and York, Nebraska, ethanol facilities, with combined annual production capacity of 236 million gallons per year, for approximately $237 million in cash, plus certain working capital adjustments.
Over the past year Spanish renewable company Abengoa has been struggling with financial instability that has pushed it on the brink of bankruptcy.