UNL CropWatch Sept. 3, 2010: Legal Counsel Recommended in Bioenergy Suit
Sept. 3, 2010
Some Nebraska farmers have received letters saying they have to pay money into the VeraSun bankruptcy case.
Roger McEowen, director of Iowa State University’s Center for Agricultural Law and Taxation, has analyzed this situation and has written an article, The Verasun Bankruptcy – Can the Bankruptcy Trustee Recover Payments Made to Suppliers Within 90 Days of the Bankruptcy Filing. I agree with McEowen's analysis.
The important point is that any farmer receiving one of these letters needs to contact an attorney as soon as possible for counsel. The farmer could be sued by the bankruptcy trustee (the lawyer who administers the bankruptcy case under the supervision of the bankruptcy judge) and be made a part of the bankruptcy case. It may be possible for a group of farmers to seek legal counsel together; however, it’s important that you contact a lawyer and address this as soon as possible.
UNL Agricultural Law Specialist, Lincoln