A deal for bankrupt Farmland Industries to sell the bulk of its nitrogen fertilizer business to Wichita-based Koch Nitrogen does not include Farmland’s Lawrence fertilizer plant.

The Lawrence plant has been shut down since May of 2001, and Koch officials said they were only interested in purchasing plants that were still in operation.

“If you take a look at the assets Farmland kept operating, they were making a bet on which assets could be the most steady performers if the fertilizer market recovers,” Mary Beth Jarvis, a spokeswoman with Koch Nitrogen, said. “The Lawrence plant wasn’t part of that bet. We kind of just followed their lead in that respect.”

Bankrupt Farmland Industries has reached a deal to sell the bulk of its nitrogen fertilizer business to Wichita-based Koch Nitrogen Company, the two companies announced today.

The deal, which was announced today, is valued at approximately $270 million. It must still receive approval from the U.S. Bankruptcy Court. Other interested buyers also will have a chance to make an offer for the facilities. The bankruptcy court will require Farmland to hold an auction for the assets.

Koch’s offer of $270 million will be the opening bid at that auction, but other companies can choose to bid more for the assets. Farmland officials said they expect the court to hold that auction this spring.

For updates on this story, see Wednesday’s Lawrence Journal-World.