LUFKIN, TX (KTRE) - An Angelina County district judge has approved the foreclosure of the Aspen Power plant.
In the hearing, it was announced the plant already has a minimum bid of $5 million bid on the table. The sheriff's office will auction it off at a later date.
As part of the foreclosure agreement, which involved many parties having to come to a resolution, it was decided the sheriff's office will get paid first for holding the auction. Next, $400,000 of property taxes from 2015 and 2016 will be paid. Then, $3.4 million will go to US Bank, which will be reimbursement for having paid previous years' taxes. Then what is left will be divided up among the final debtors, who will hire a mediator from outside Lufkin to make a recommendation on how to split it up.
Danny Vines, with the help of investors, built the first renewable biomass plant in the state and it opened in August of 2011. It shut down for the final time under Vines' control in September of 2012 due to falling energy prices. Investors took over the plant in May of 2013 and re-started it in 2014 so that they could market it for sale. The investors then shut it down in early 2016.