Biodiesel (fuel made from food or other organic components, as opposed to made from fossil fuels) was touted as the savior of our environmental, financial and foreign policy energy woes.
Everybody and their brother was investing in biodiesel or ethanol plants several years back…and a substantial number of those investments in the state of Illinois went down the tubes fairly quickly, as turning food into fuel is an expensive proposition. Not to mention the fact that it takes grains (corn and soy beans) off the market…and out of the mouths of animals that are used in order to feed the populace.
But some companies had high hopes, and persevered in the face of all obstacles.
Even Blue Northern, a company we’ve written about in the past. With a biodiesel facility situated in Jasper County outside of Newton, Blue Northern has pushed ahead, and now, that pushing being despite a mortgage foreclosure and a number of other lawsuits being filed in recent months in Jasper County.
Here now is our coverage of the matter, in your evening Read the Lead, Multiple lawsuits filed in biodiesel plant construction; company moves forward:
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JASPER CO.—Work is apparently continuing at the Blue Northern National Trail Biodiesel plant in Newton, but multiple filings in Jasper County circuit court may spell out trouble for the facility and its future.
Known as BN National Trail Biodiesel, the facility, located south of Newton, has been touted as one of the main players in the biodiesel industry due to its location in the Midwest, as well as the proximity to Illinois’ major soybean crops, from which it is set to extract oil that will become fuel.
However, biodiesel hasn’t taken off as the savior of America’s fuel crisis since the alternative fuel push first began when gas prices went on a ridiculous rise following 9/11 in 2001.
And facilities that turn food into fuel have, nationwide, not seen the expansion that was touted in the early 2000s; instead, many proposed—and partially-built—facilities have closed down altogether, leaving investors high and dry and with no recourse except to go to the court systems.
While progress continues at BNNT in Newton, the unfortunate turn as of July is that claims filed against the corporation two years ago as “mechanic’s liens” have now turned into lawsuits; and worse, a local bank that provided the main funding for the facility has filed a complaint for foreclosure as well.
Foreclosure filed by bank in Iuka
Paperwork filed in Jasper County circuit court July 22, 2014, shows that the Iuka State Bank filed a three-count complaint against BNNT, as well as three other Delaware limited liability companies, Urban Development Fund XIX LLC, UDF XII SPE C, LLC and Blue Northern NT Holdings LLC; as well as Anthony J. Quinones; Hi-Tech Industrial Services Inc. of Texas; three Illinois corporations, Consolidated Pipe & Supply Company Inc., Plocher Construction Company Inc. and ILMO Products Company; and National Steel Erection, Inc., a Kentucky corporation.
The mortgage, in the original amount of six million dollars, was filed March 7, 2014 in Jasper County. The Iuka bank mentions in its filing the two mechanic’s liens recorded against the property, and states that BNNT hasn’t furnished the bank with adequate reserves to discharge the liens.
Further, the bank states that BNNT hasn’t paid the installments from June 2 to the time of filing…meaning that BNNT made a total of two payments on the mortgage before defaulting.
The principal of $5,936,456.63, along with interest of $42,668.28 and late charges of $4,982.46, brings the current total owed to $5,984,107.37.
The bank is also asking for a per diem (per day) interest rate of $948.18, court costs, title costs, attorneys’ fees and further advances.
The other parties over and above BNNT are joined in the suit because the bank says they have interest in or lien on the mortgaged real estate, sought to be terminated (in other words, the bank is asking the court to order that BNNT and any interested parties pay back the bank before they pay back….
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