SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Current Report Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (date of earliest event reported): January 18, 2013
NEDAK Ethanol, LLC
(Exact Name of registrant as specified in its charter)
Item 8.01 Other Events
As previously disclosed, NEDAK Ethanol, LLC (the “Company”) is in default under its loan agreements with both its senior lender, AgCountry Farm Credit Services, FLCA (the “Senior Lender”), and its tax increment financing lender, Arbor Bank (the “TIF Lender”) and both the Senior Lender and the TIF lender have accelerated the repayment of all amounts due under the respective loan agreements and informed the Company that they intend to exercise their remedies under the respective loan agreements and take such actions as deemed necessary or desirable to protect their interest in the collateral which includes all or substantially all of the assets of the Company.
As previously disclosed, the trustee for the Senior Lender has exercised its right to foreclose on the trust property pursuant to the Deed of Trust, Security Agreement, Assignment of Leases and Rents and Fixture Financing Statement, as amended (the “Deed of Trust”) which secures the indebtedness under the Senior Lender loan documents and has initiated foreclosure proceedings to sell the trust property at a sheriff’s sale scheduled for 2:00 p.m. on January 22, 2013 inside the front door of the Holt County Courthouse in O’Neil, Nebraska.
In addition, the Senior Lender has served the Company with a Notice of Public Sale - Personal Property Collateral (the “Notice of Public Sale”) relating to certain property of the Company pledged by the Company to the Senior Lender under one or more security agreements, including, without limitation, the Security Agreement dated February 14, 2007 between the Company and the Senior Lender. The property to be sold includes all personal and fixture property, including, without limitation, inventory, equipment, instruments (including notes), letter-of-credit rights, deposit accounts, securities and other investment property, commercial tort claims, contract rights or rights to the payment of money, and all general intangibles, including, without limitation, patents, trademarks, trade names, copyrights, software, customer lists, goodwill, leases, leasehold interests, license, permits and agreements of any kind or nature whatsoever (collectively, the “Personal Property Collateral”). A full list of the Personal Property Collateral to be sold is set forth on the Notice of Public Sale – Personal Property Collateral attached as Exhibit 99.1 to this Current Report on Form 8-K and incorporated herein by reference. The public sale is scheduled for 2:00 p.m. on January 22, 2013 inside the front door of the Holt County Courthouse in O’Neil, Nebraska.
The foregoing description of the Notice of Public Sale does not purport to be complete and is qualified in its entirety by reference to the full text of the document attached hereto as Exhibit 99.1 and incorporated herein by reference.
The Company expects that upon completion of the foreclosure proceedings described above, there will not be any monies or assets available to distribute to its members or creditors other than the Senior Lender and that the Company will not be in a position to resume operations.
Item 9.01. Financial Statements and Exhibits
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.