From Mr. Kreisler to ED

Blog readers. Ed had provided the boards with many communications with Mr. Kreisler over time. His posts have always checked out and the SkunK believes this to be genuine.

By: edman7500203
Nov 2008, 08:23 AM EST
Msg. 6485 of 6493 Jump to msg. #

From Mr. Kriesler, This could mean something good. He has been quiet lately but yesterday when I inquired about his thoughts on the Verasun thing, I got this quick reply.

On Sun, Nov 2, 2008 at 3:17 PM,
Kevin Kreisler wrote:

Rationalization will in general strengthen the entire industry and decrease our risk relative to deploying assets at new client facilities. In this particular case, we have been and remain eager to earn the business of Verasun on terms that are consistent with our standard offering. A strong business case can be made that we provide a superior path to no-cost cash flows that can be used to enhance their ability to service secured and unsecured credit and facilitate a more rapid restructuring process for the benefit of all stakeholders.

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http://ragingbull.quote.com/mboard/boards.cgi?board=GERS&read=6485
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This would really be a deal if we were part of the increased cash flow settlement to get them back up after bankruptcy. It would more than double our back-order and be a sea change. This would get the attention of everyone in the industry and I would expect a significantly move of pps for GERS if this were to happen.

VeraSun has 17 facilities. The SkunK can see they are planning to do an in house extraction at VeraSun Aurora, but they are only designed to handle less than 8% of their total Corporate DDGs for extraction anyway. Also, that facility is not done yet. (The process is expected to yield 8 million gallons of corn oil annually from 390,000 tons of distillers grains.)
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From the Verasun web site:
VeraSun Energy Corp. (NYSE: VSE), headquartered in Sioux Falls, S.D., is a leading producer and marketer of ethanol and distillers grains. Founded in 2001, the company has a fleet of 16 production facilities in eight states, of which one is still under construction. VeraSun Energy is scheduled to have an annual production capacity of approximately 1.64 billion gallons of ethanol and more than 5 million tons of distillers grains by the end of 2008.

http://www.distillersgrainquarterly.com/article.jsp?article_id=1210&article_title=Three+VeraSun+plants+to+implement+corn+oil+extraction+units

SkunK