Cases
Lender Salvages Investment

Biofuel Plant Lender Recovers Investment

Anthony Ostlund helps biofuel plant lender recover the majority of its investment 

"This was a challenging case where success could only be obtained by persuading people with a broad range of interests to compromise their positions for the overall goal of getting the biofuel plant operational.  Ultimately the common sense notion that half a loaf is better than none carried the day." --Norman J. Baer

Client Issue

Our client was a lender on a biofuel plant that went into bankruptcy.  To save its investment, our client purchased the plant and then had to resolve disputes with contractors, sub-contractors, suppliers, customers and many others who all had claims related to the plant’s failure and some of whom were necessary to complete the plant and make it operational.

The Anthony Ostlund Approach

This case required a combination of practical organizational skills, an appreciation of financial realities, hard-nosed negotiations, and legal acumen. We worked with the client to understand what needed to be done to get the plant operational and then used that information to set the priorities for problem solving with the long line of people who had been left unpaid. We then worked through the priority list solving problems through negotiated deals whenever possible. The goal was to fight on the legal front only to the extent necessary to achieve a viable business solution.

Results Achieved

The net result was that the plant was finished, put into operation, and sold.  Our client salvaged the vast majority of its investment – a far better result than the alternatives that had been presented on behalf of the debtor in bankruptcy court.

 

Central Illinois Energy, L.L.C., Debtor

United States Bankruptcy Court, Central District of Illinois