Agri Beef sues partners in biodiesel venture
An Idaho beef company is suing its partners in a California joint venture aimed at turning beef tallow into biodiesel.
Agri Beef, an integrated beef producer based in Boise, Idaho, is demanding that the other companies repay about $3 million of a $9 million loan made to North Star Biofuels of Watsonville, Calif.
The complaint alleges that Agri Beef lent the $9 million to North Star in 2012 to begin construction of its biofuel facilities, with R Power Biofuels and other firms guaranteeing the loan.
The biofuel project failed to become commercially operational in June 2014, which means North Star defaulted on the loan agreement and the guarantors owe Agri Beef about $3 million, the complaint said.
Agri Beef also seeks to foreclose on collateral, such as intellectual property relating to biofuel production, owned by the guarantors.
Capital Press was unable to reach any of the parties involved in the dispute for comment.