A NORTHWEST IOWA ETHANOL PLANT IS FACING MORE LEGAL ISSUES AFTER A BANK SAYS IT DEFAULTED ON ITS LOANS.
QUAD COUNTY CORN PROCESSORS NEAR GALVA WAS SHUTTERED IN LATE 2024 AFTER AN EQUIPMENT FAILURE.
AT THAT TIME, THE COMPANY SAID IT WAS A TEMPORARY CLOSURE UNTIL A NEW OWNER WAS FOUND.
LINCOLN SAVINGS BANK FILED A LAWSUIT AGAINST THE COMPANY THIS WEEK IN CHEROKEE COUNTY.
THEY WANT THE COURT TO START FORECLOSURE PROCEEDINGS.
ANOTHER LAWSUIT WAS FILED IN IDA COUNTY IN FEBRUARY.
COURT DOCUMENTS SHOW THE BANK LOANED QUAD COUNTY CORN PRODUCERS $26 MILLION DOLLARS OVER THREE LOANS, WITH A LARGE PORTION GUARANTEED BY USDA RURAL DEVELOPMENT.
THE C-E-O OF THE ETHANOL PLANT SAYS HE WON’T COMMENT ON THE SITUATION AT THIS TIME.
A FEW YEARS AGO, THE PLANT FACED FINES TOTALING ALMOST $28 MILLION DOLLARS FROM THE E-P-A AND THE IOWA D-N-R FOR CLEAN AIR ACT VIOLATIONS.
SETTLEMENTS FOR MUCH LESSER AMOUNTS WERE REACHED.
Sheila Brummer IPR
