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VeraSun Energy filed with the U.S. Bankruptcy Court a motion for debtor-in-possession financing approval. The motion asserts, “.the Debtors had made great progress towards securing longer-term debtor-in-possession financing from a single third party lender when the Debtors’ already tight liquidity situation was exacerbated on October 28, 2008 by Debtwire.com, publishing an article detailing the Debtors’ liquidity crisis and efforts to secure debtor-in-possession financing. Thereafter, the Debtors’ remaining liquidity evaporated before they were able to reach agreement on debtor-in-possession financing, resulting in commencement of the Debtors’ cases on October 31, 2008 without completion of negotiations for such postpetition financing.” Specifically, the motion seeks approval of separate D.I.P. financing facilities and/or cash collateral orders, as follows: (1) the secured noteholders will provide up to $25 million on an interim basis and up to $190 million on a final basis to fund working capital needs; (2) a cash collateral order with respect to the cash collateral of UBS to fund the VeraSun Debtors’ working capital needs; (3) AgStar will provide up to $17 million of D.I.P. financing on an interim basis and up to $30 million on a final basis to fund the working capital needs of the seven US BioEnergy Debtors presently financed by the AgStar Facilities (this will consist of seven separate loan and security agreements and D.I.P. orders-one for each Debtor, on a non-cross collateralized basis); (4) a cash collateral order with Dougherty, providing for the use by Marion Debtor of Dougherty’s cash collateral to fund the working capital needs of the Marion Debtor and (5) a cash collateral order with West LB, providing for the use by the ASA Debtors of WestLB’s cash collateral to fund the working capital needs of the ASA Debtors.

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