UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): ~~April~~May 2825, 2010

_______________________________________________________________________

(Exact name of Registrant as specified in its charter)

_______________________________________________________________________

Commission File Number ~~272199 100~~1-6227

Iowa

(State of Incorporation)

20-4195009

(I.R.S. Employer Identification No.)

2108 140th Avenue, P.O. Box 21

Algona, IA 50511

(Address of Principal Executive Offices)

(515) 395-8888

Registrant’s telephone number, including area code

_____________________________________________________________________________________

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 82.0104. ~~Other~~ Triggering Events that Accelerate or Increase a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement.

~~Foreclosure~~In ~~Proceedings.~~June On2006, ~~April~~East ~~29,~~Fork ~~2010~~Biodiesel, ~~Summary~~LLC ~~Judgment and Decree of Foreclosure~~ (“~~Decree~~East Fork”) ~~was~~ entered ~~against~~into ~~East~~a Master ~~Fork~~Contract ~~Biodiesel,~~Agreement ~~LLC~~ (the “~~Company~~Master Contract”) bywith the Iowa ~~District~~Department ~~Court for Kossuth County, Iowa in connection with the June 22, 2009 Petition for Foreclosure filed by Farm Credit Services~~ of ~~America,~~Economic ~~FLCA~~Development (“~~Farm Credit~~IDED”). ~~Farm~~IDED ~~Credit’s~~provided ~~Petition~~East ~~resulted~~Fork ~~from~~with ~~the~~two ~~Company’s~~funding ~~failure~~sources toand ~~make a $1~~benefits,~~825,000~~ ~~principal~~the ~~payment~~VAAPFAP toFunding ~~Farm~~Agreement ~~Credit~~(the ~~which~~“VAAPFAP ~~was~~Agreement”) ~~due~~and ~~on May 20, 2009 under~~ the ~~Company’s~~EZ ~~$24,500,000~~Funding ~~Restated Term Loan~~ Agreement. ~~Farm~~Under ~~Credit~~the ~~has~~VAAPFAP aAgreement, ~~first~~East ~~mortgage~~Fork inwas ~~all~~awarded ~~of our real estate and~~ a ~~first security interest in all of our equipment and fixtures~~$100,000 ~~including~~forgivable ~~our~~loan ~~plant. The~~to ~~Court’s~~be ~~Decree~~forgiven ~~granted~~over ~~judgment~~36 ~~against~~months ~~the~~("Forgivable ~~Company~~Loan") inand ~~the~~a ~~amount of~~ $24300,~~500,~~000, ~~together~~repayable ~~with~~loan ~~accrued~~(the ~~interest~~“Repayable asLoan”). These ofloans ~~February~~are 16non-interest bearing, ~~2010~~except in the ~~amount~~event of ~~$1,236,391.99~~default ~~for~~which agives ~~total~~rise ofto ~~$25,736,391.99,~~the ~~plus~~obligation ~~interest~~to ~~thereafter~~pay indefault ~~the~~interest. Both ~~amount~~loans ofare ~~$5,197~~unsecured.~~91 per diem.~~

~~The~~On ~~Court’s~~May ~~Decree~~25, ~~stated~~2010 ~~that~~IDED ~~Farm~~notified ~~Credit~~East ~~has~~Fork ~~not~~that ~~waived~~it ais ~~deficiency~~in ~~judgment~~default ~~against~~under the ~~Company~~VAAPFAP ~~and~~Agreement ~~that~~(the ~~Farm~~“Default ~~Credit~~Notice”). As isof ~~entitled~~April to30, a2010, ~~deficiency~~an ~~judgment~~aggregate ~~against~~of ~~the~~$265,000 ~~Company~~was outstanding. ~~The~~ ~~Court’s~~Specifically, ~~Decree~~East ~~further~~Fork ~~stated~~failed ~~that~~to ~~special~~timely ~~execution~~meet ~~may issue for sale of~~ the ~~mortgaged~~requirements ~~real~~to ~~estate~~(a) ~~and~~create/retain ~~related~~36 ~~plant,~~full-time ~~fixtures~~equivalent ~~and~~jobs ~~attached equipment~~ (~~collectively the~~ “~~real estate and Plant~~FTE”), ~~that~~with ~~the~~specified ~~Company~~wage ~~will~~and ~~have~~benefits 12per ~~months~~hour, toand ~~redeem~~(b) ~~its~~have ~~interest~~total inproject ~~the~~expenditures ~~real~~of ~~estate and Plant~~$69,000,000. ~~The~~ Under ~~Company~~the ~~and~~VAAPFAP ~~Farm~~Agreement, ~~Credit~~such ~~have~~job ~~agreed~~creation ~~that~~was ~~Farm~~required ~~Credit~~by ~~will~~July ~~defer~~31, ~~execution~~2009; onunder anthe ~~foreclosure~~EZ ~~judgment~~Funding ~~until June 1~~Agreement, ~~2010~~such injob ~~exchange~~creation ~~for~~is ~~the~~required ~~Company’s agreement~~ to ~~maintain~~be ~~the~~completed ~~Plant~~by ~~and~~July ~~equipment until June 1~~31, 2010.

~~The~~As ~~Company~~of ~~expects~~the ~~that~~required ~~Farm~~completion ~~Credit~~date ~~will~~under ~~proceed~~the ~~with~~VAAPFAP ~~efforts~~Agreement, toEast ~~scheduling a Sheriff~~Fork’s ~~Sale~~total ~~sometime~~employment ~~after~~was ~~June~~three 1FTE’s, ~~2010. The~~resulting ~~1-year~~in ~~redemption~~a ~~period~~92% ~~will~~shortfall. The ~~run~~total ~~from~~project ~~the~~expenditures ~~date~~fell ~~that~~short of the ~~sale occurs. If~~$69,000,000 atrequirement because the ~~Sheriff’s~~continued ~~Sale,~~idling ~~Farm~~of ~~Credit bids~~the inplant ~~less~~meant lower than ~~the~~anticipated ~~total~~expenditures ~~amount~~for ofworking ~~the~~capital ~~Company’s~~and ~~indebtedness~~job training. Additionally, ~~then~~East ~~Farm~~Fork ~~Credit~~was ~~will~~required ~~have~~to adocument ~~“deficiency~~certain ~~judgment”~~required ~~that~~production itlevels ~~can~~and ~~pursue~~these ~~against~~terms ~~the~~were ~~Company’s property~~not ~~other~~satisfied. These ~~than~~failures ~~the~~constituted ~~real~~an ~~estate~~event ~~and~~of ~~Plant,~~default ~~such~~under asthe ~~its~~VAAPFAP ~~remaining cash~~Agreement.

~~Conclusion~~The ofDefault ~~the~~Notice ~~foreclosure~~advised ~~process~~East ~~will~~Fork ~~have~~that asince ~~material~~it ~~adverse~~is ~~impact~~unable onto ~~the~~cure ~~Company’s~~these ~~financial~~defaults, ~~condition~~ and ~~results~~because 100% of ~~operations,~~its ~~result~~job inobligations ~~the~~were ~~loss~~not fulfilled, full repayment of the ~~most~~Repayable orLoan ~~all~~and ofForgivable Loan with the ~~Company’s~~shortfall ~~operating~~percentage ~~assets~~of 6% is now required. The Repayable Loan and aForgivable ~~permanent~~Loan ~~shut-down~~amounts ofnow ~~the~~due ~~plant~~and owing ($165,000 and ~~cause~~$100,000, ~~the~~respectively) ~~Company’s members~~have been blended together to ~~lose~~reflect ~~most~~a ortotal ~~all~~outstanding balance at an effective interest rate of ~~their~~5.7% ~~investment~~which inhas been amortized over the ~~Company~~remaining term of the Repayable Loan with monthly payments through January 1, 2013. The first payment of $9,169.90 is due July 1, 2010.

~~Private~~If ~~Offering.~~East OnFork ~~January~~does 24, 2010, the Company’s Board of Directors commenced a private offering of subordinated unsecured notes convertible into the Company’s membership units (“convertible debt”). The convertible debt will not betimely ~~registered~~make ~~under~~such ~~the Securities Act of 1933~~payment, ~~as amended (~~the ~~“Securities~~Default ~~Act”)~~Notice ~~and~~advises ~~may~~that ~~not~~the beIDED ~~offered~~will orrefer ~~sold in~~ the ~~United~~unpaid ~~States~~balance ~~absent~~to ~~registration~~its orcollection ~~an applicable exemption from registration requirements~~unit. ~~The~~ It ~~offering~~ is ~~being~~unlikely ~~made~~that toEast ~~accredited~~Fork ~~investors,~~will asbe ~~defined~~able into ~~Regulation~~make ~~D of~~ the ~~Securities~~required ~~Act,~~payments ~~including~~and ~~the~~avoid ~~Company~~IDED’s ~~existing~~commencement ~~members~~of ~~who~~collection ~~qualify~~proceedings. ~~The~~ As ~~net~~of ~~proceeds~~May ~~from~~31, ~~the offering~~2010, ~~depending~~East ~~upon~~Fork ~~whether~~had a$165,256 ~~sufficient~~in ~~amount~~unrestricted iscash. East ~~subscribed,~~Fork ~~will~~projects bethat ~~used~~it towill ~~make~~exhaust ~~plant~~its ~~modifications~~remaining ~~for~~available ~~pretreatment,~~cash by as ~~well~~early as ~~for~~July ~~working capital~~1, to2010 ~~service the Company’s debt~~ and ~~pay~~no ~~its~~later ~~interim~~than ~~operating~~August ~~expenses. The~~31, ~~offering is for a minimum principal amount of $17~~2010,~~000,000~~ ~~and~~unless aEast ~~maximum~~Fork’s ofprivate ~~$27,500,000~~offering of ~~the~~ convertible debt, ~~which~~is ~~upon full conversion could result in the issuance of approximately 470,000 additional units~~successful.

OnUnder ~~April~~the ~~28,~~Master ~~2010~~Contract, ~~the~~East ~~Company’s~~Fork ~~Board~~and ofits ~~Directors~~members ~~approved~~are entitled to receive certain enterprise zone benefits, including an ~~extension~~Iowa supplemental new jobs tax credit, value added property tax exemption, Iowa investment tax credit and refund of ~~the~~Iowa ~~private~~sales, ~~offering~~service ~~termination~~and ~~date~~use ~~from~~taxes ~~April~~paid 30to contractors or subcontractors. The $1,041,000 ~~2010~~annual ~~until~~investment tax credit is available for a five-year period beginning July 1, 2007 through June 2930, ~~2009~~2012. East Fork has received sales tax refunds from the Iowa Department of Revenue of $851,214.

The primary benefit under the EZ Funding Agreement is investment tax credits. The investment tax credits total $5.2 million and are claimed by East Fork’s members over a five-year period beginning July 1, 2007 in the amount of $1,041,000 each December 31st. The annual credits were included on members’ Schedule K-1 (Partner’s Share of Income, Deductions, Credits, etc.) for calendar years 2007, 2008 and

2009. In addition, under the EZ Funding Agreement, East Fork was entitled to receive certain enterprise zone benefits, including value-added property tax exemption and a refund in the amount of $851,214 of Iowa sales and use taxes paid to contractors, subcontractors and suppliers.

Further, if East Fork fails to meet the job creation requirements by July 31, 2010, then, under the EZ Funding Agreement, East Fork will be obligated to repay any benefits it has received and the State of Iowa may recapture the tax credits that have been passed through to East Fork’s members. Such recapture may result in additional Iowa income tax for East Fork’s members for the calendar years 2007, 2008 and 2009.

The foregoing description of the Master Contract does not purport to be complete and is qualified in its entirety by reference to such agreement, which is filed as Exhibit 10.1 on East Fork's Form 8-K filed on June 1, 2009.

FORWARD-LOOKING STATEMENTS

The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for forward-looking statements. This Current Report on Form 8-K contains information that may be deemed forward-looking that is based largely on East Fork’s current expectations and is subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those anticipated.

Such risks, trends and other uncertainties, which in some instances are beyond East Fork’s control, include, but are not limited to:

·	the impact and duration of the current recession, the distressed economic environment of the biodiesel industry and the continuing credit crunch;

East Fork’s inability to secure replacement financing for its indebtedness under its restated term loan agreement, its inability to obtain working capital and capital improvement financing resulting in continued idling of its plant, its inability to generate cash liquidity from operations sufficient to service its significant debt levels and comply with its financial obligations under its restated term loan agreement and its ability to repay its principal and interest obligations and avoid a sheriff’s sale of its real estate, plant and equipment in connection with the foreclosure of the mortgage and security interest on such assets under its restated term loan agreement;

·	satisfactory completion of East Fork’s capital raising efforts under its private offering in an effort to avoid a bankruptcy filing or the judicial dissolution of East Fork and loss of its members’ investment in East Fork;

·	changes in interest rates, prices of or demand for diesel fuel, refined soybean oil and other commodity prices, energy costs, shipping costs, labor costs, available production and management personnel; and

changes to or elimination of government subsidiaries or incentives, including the federal biodiesel blenders’ tax credit which expired on December 31, 2009, loss of exports due to the European Commission’s imposition of duties on imports of United States biodiesel, legislative and regulatory developments, including additional duties or tariffs on United States biodiesel and other results of operations or financial conditions.

Any statements that are not statements of historical fact (including statements containing the words “may,” “will,” “would,” “could,” “believes,” “expects,” “anticipates,” “intends,” “plans,” “projects,” “considers” and similar expressions) generally should be considered forward-looking statements. Readers are cautioned not to place undue reliance on such forward-looking statements, which are made as of the date of this Form 8-K. East Fork does not publicly undertake to update or revise its forward-looking

statements, whether in response to new information, unforeseen events, changed circumstances or otherwise.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	EAST FORK BIODIESEL, LLC
Date: May 5, 2010	By:
Date: June 9, 2010	By:
		Chris Daniel
		Chief Executive Officer

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