NEW YORK, April 13, 2011 /PRNewswire/ -- Otter Tail Ag Enterprises LLC a Minnesota-based ethanol production company, has completed a sale of its ethanol production facility pursuant to Section 363 of the bankruptcy code to Green Plains Renewable Energy Inc, the fourth largest ethanol production company in the country. Total consideration was approximately $60 million, of which $55 million was for the property, plant and equipment and the remainder for inventories and other assets. The investment banking group of Carl Marks Advisory Group LLC acted as exclusive M&A and financial advisor to Otter Tail.
Otter Tail filed for bankruptcy in October 2009 and originally intended to pursue a Plan of Reorganization that provided for a full reinstatement of the secured lenders' indebtedness of approximately $55 million and a recovery of $6.5 million in cash and $2.3 million of equity to the bondholders on their total claim of approximately $26 million. Ultimately, that Plan of Reorganization did not materialize, and in October 2010, Otter Tail engaged Carl Marks to conduct a formal sale process. In January 2011, Carl Marks and Otter Tail installed Green Plains as the Stalking Horse Bidder, leading to a successful sale of the assets and a distribution of approximately $16 million in cash to the bondholders – a premium of more than 80 percent over the previously agreed upon Plan of Reorganization.
"This transaction realized significant value for all constituents in a volatile marketplace," said Christopher K. Wu, partner of Carl Marks Advisory Group. "The deal is an outstanding outcome for all of the parties involved in the transaction."
This transaction marks the sixth consecutive engagement for Carl Marks in the domestic ethanol industry. The firm has collectively advised constituents throughout the capital structure on engagements representing over 2.4 billion gallons of ethanol production capacity.
About Carl Marks Advisory Group LLC and Carl Marks Securities LLC
Carl Marks Advisory Group LLC, with offices in New York, Vienna, Va., Bedminster, N.J., and Charlotte, N.C., provides a wide array of investment banking and financial, operational and real estate advisory services to the middle market, including mergers and acquisitions advice, sourcing of capital, financial restructuring plans, strategic business assessments, improvement plans and interim management. Carl Marks Advisory Group is the 2010 recipient of the Turnaround Management Association's Turnaround of the Year Award in the Large Company category.
Carl Marks Securities LLC, based in New York, assists its clients in executing private placements of debt and equity. The firm is a member of FINRA and SIPC. Additional information about Carl Marks Advisory Group LLC and Carl Marks Securities LLC is available at www.carlmarks.com.
SOURCE Carl Marks Advisory Group LLC