Carl Marks Acts as Exclusive Financial Advisor in Sale of Otter Tail Ag Enterprises

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 exceeded $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.


	Christopher K. Wu Partner Carl Marks Advisory Group LLC 212-909-8447 \| phone cwu@carlmarks.com

"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 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.