Cascade Grain Products LLC, in Clatskanie, Ore., will be sold at auction on Dec. 9, with qualified bids due Dec. 7. The plant began production in June 2008 and filed for Chapter 11 bankruptcy in January 2009.
Jeff Manternach, a sales agent with IR1 Group, which is the company handling the auction, said there has been a “fair amount” of interest in the facility so far. “We’ve been conducting tours and have had some good interest from a range of players, including existing ethanol producers and service providers in the industry,” he said. “Some folks are looking at it from the fuel end—parties interested in it as a fuel terminal. There’s also been some ag interest from groups with ideas about the distillers grains at that plant.”
Unlike some facilities that might have been dismantled through a sale, Cascade is expected to be sold and operated as it was intended. The plant was fully built and operated for six months before market conditions forced the company to file for bankruptcy. “The industry squeeze in June 2008 meant the plant came online at the worst possible time,” Manternach said.
During its operation, the plant reached its nameplate capacity of 108 Mmgy, but was unable to maintain that level of production. This didn’t help matters, according to Maternach, but it wasn’t the reason the plant shut down.
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IR1 and Maternach believe the sale will be completed successfully as the plant has a lot to offer. “The plant is unique in that it’s situated along the Columbia River and does have deep water barge access, along with 7.5 million gallons of storage capacity for denatured product. Of course, it also has unit train unloading capabilities.”
More information about the auction can be found at http://www.ir1group.com/assetsales.aspx.
Bankruptcy Dates and Facts
Key Asset Facts
