Advanced BioEnergy (ABENU) Risk Analysis

We plan to distribute, in an initial distribution (with potential subsequent distributions thereafter), a portion of the net proceeds from the Asset Sale and the Company's other cash, subject to establishing a contingency reserve for remaining costs and liabilities. The amount and timing of the distributions to members will be determined by the Board in its discretion, subject to the provisions of the Plan of Liquidation. However, the Board anticipates an initial distribution in January 2020 in an amount between $7.7 and $8.4 million or $0.30 to $0.33 per unit based on 25,410,851 units outstanding as of December 19, 2019. Subsequent distributions will be made in such amounts and at such times as determined by the Board in its discretion in accordance with the Plan of Liquidation. The Board anticipates that there will be a subsequent distributions of approximately $7,500,000 or approximately $0.30 per unit. The timing and amount of distributions are subject to change depending on a variety of factors, including, but not limited to, whether we are able to sell our remaining assets and the prices therefor; the timing of the sale of our remaining assets; the amount we will be required to pay to satisfy unknown or contingent liabilities in the future, including the cost of winding down our business through the date of our final dissolution; inaccuracies in the cost estimates to resolve currently known contingent liabilities; general business and economic conditions; and other matters. In addition, we will continue to incur claims, liabilities and expenses following the Asset Sale closing as we effect the liquidation, such as personnel expense, insurance, taxes, legal and accounting fees and miscellaneous office expenses. Our estimates regarding our expense levels may be inaccurate. Any unforecasted or unexpected claims, liabilities or expenses that arise during liquidation and dissolution or any claims, liabilities or expenses that exceed our estimates could leave us with less cash than is necessary to pay liabilities and expenses and would likely reduce the amount of cash available for ultimate distribution to our members. Further, if cash to be received from the sale of our remaining assets is not adequate to provide for all of our obligations, liabilities, expenses and claims, we will not be able to make any subsequent distribution to our members. Accordingly, there can be no assurance as to the timing or amount of distributions to our members.

Following the Asset Sale and through the subsequent liquidation and dissolution, we have an obligation to continue to comply with the applicable reporting requirements of the Exchange Act even though compliance with these reporting requirements may be economically burdensome. In connection with the liquidation, the Company intends to seek relief from the SEC to deregister its units or suspend certain of its reporting obligations under the Exchange Act.  However, there can be no assurance that any such relief will be granted.  Until we are able to deregister our units and suspend our periodic reporting obligations under the Exchange Act, we will remain a reporting issuer and will incur attendant costs relating to filing such reports with the SEC. The expenses incurred by us in complying with the applicable reporting requirements would reduce the assets available for ultimate distribution to our members.