Iowa Ethanol Plant Headed for Sheriff Sale Amid Financial Woes
Quad County Corn Processors, an ethanol plant in Iowa, is set to be sold at a sheriff's sale on Friday due to defaulting on $19 million in USDA-backed loans. The plant, which was appraised at $56 million in 2020, halted production in late 2024 after a molecular sieve failed.
The bank, Lincoln Savings Bank of Reinbeck, is expected to enter a credit bid and take ownership if no higher bid is made. Court records show the plant never responded to lawsuits from the bank, which alleged default on loans tied to the plant's real estate and administration building.
Quad County faced financial pressure after failing to make $500,000 in scheduled payments in December 2024. The plant also faced regulatory trouble, with Iowa Attorney General Brenna Bird suing the company last year for over $6 million in Clean Air Act fines, which were settled for less than 2% of that amount.