June 30--Energae LP, a financially troubled green energy company based in Clear Lake, Iowa, is telling shareholders that officials are considering whether the company should sell its assets.
Dennis Roland, identifying himself as "asset manager" in a June 12 letter, asked shareholders to attend meetings in Iowa last week. In the letter, provided to Agweek by a shareholder, Roland said the company is "preparing for reorganization and developing new business models."
"One of these proposed events may include the POTENTIAL sale of assets of Energae LP and I Lenders LLC," Roland wrote, in boldface type in the letter. Roland did not hint whether the company was planning on selling either its ethanol-making equipment in Hopkinton, Iowa, or its electricity generation plant in Cedar Rapids, Iowa, both of which haven't operated for several months.
"I am excited about the future of these companies and the potential value of your investment," Roland said. He said the company's challenges would be discussed at meetings on June 26 in Storm Lake, June 27 in New Hampton and June 28 in Clear Lake -- all in Iowa.
Former company spokesperson Darrell Duane Smith, who in March 2012 talked to Red River Valley farmers about growing beets for making ethanol in Grafton, N.D., has since lost his stock brokerage and insurance licenses in Iowa. He has been ordered by Iowa insurance authorities to have nothing to do with Energae management or fundraising. An attorney for the company has had her license suspended.
Energae LP has settled with one set of North Dakota investors who had tried to force the company into receivership. A second set of North Dakota investors has an action pending on receivership.
Calls from Agweek to Energae's office number, listed on the letter, were not immediately returned.
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