Dear friends,
supporters and investors in North Prairie Productions:
In November
2007, construction on the North Prairie Productions’
biodiesel project near Evansville was halted due to
rapidly rising commodity prices and the decision by
a key lender to withdraw from its loan commitment.
Since then, the North Prairie board of directors has
reviewed a number of options consistent with the original
mission to complete the plant and an ongoing fiduciary
responsibility to investors.
Unfortunately,
commodity price increases have continued to outstrip
the ability to produce and market biodiesel fuel at
a profit and the board has voted to terminate the project.
While we regret the impact this decision may have, we
believe it is in the best long-term interests of the
many investors, agricultural producers, suppliers and
communities North Prairie was intended to serve.
Thanks
to the board’s prudent decision to halt construction
in the face of changing market conditions and to conserve
capital, North Prairie anticipates returning approximately
50 percent of investors’ equity in coming months.
Investors will receive 35 percent of their funds in
the next few weeks, while the remaining money will
be disbursed following the completion of liquidation
efforts. Although this was not our intended outcome,
we believe it represents a more positive resolution
than the recent series of plant shut downs that have
left investors with little or nothing to show for
their support of biodiesel development in Iowa, Minnesota
and other states.
We want to thank everyone who contributed to the positive
business climate that allowed the entrepreneurial spirit
behind this endeavor to take root. To learn more about
the evolution of this project, please
see the project development area of this site.
We’ve
included some additional information about the Board’s
decision below. If you have additional questions,
please contact us info@npnrg.com
or call me at (877) 299-2435.
Regards,
John P. Sheehy
Chairman of the Board |
