Summary of BIOFUEL ENERGY CORP.

Entry into a Material Definitive Agreement, Financial Statements and Exhibit

Item 1.01. Entry into a Material Definitive Agreement

On July 10, 2009, Buffalo Lake Energy, LLC and Pioneer Trail Energy, LLC, together with their direct parent, BFE Operating Company, LLC (collectively, the "Borrowers"), each a subsidiary of BioFuel Energy Corp. (the "Company"), entered into a limited consent, waiver and forbearance (the "Consent") pursuant to
(a) the Credit Agreement, dated as of September 25, 2006, among the Borrowers, BNP Paribas and the lenders party thereto and (b) the Collateral Account Agreement, dated as of September 25, 2006, among the Borrowers, the Borrowers' Agent, Deutsche Bank Trust Company Americas, as Collateral Agent and Deutsche Bank Trust Company Americas, as Depositary Agent and Securities Intermediary.

Under the terms of the Consent, the lenders have agreed to: (i) extend to July 31, 2009, the period during which the Borrowers' will have access to their bank accounts in order to pay vendors for the purchase of corn, natural gas, chemicals, and certain other materials, and to pay other operating expenses and
(ii) forbear from exercising any rights and remedies they may have arising out of the Borrowers' failure to repay the construction loans on or prior to June 30, 2009.

As previously disclosed, the Company received a Notice of Default from the lenders, dated May 22, 2009, asserting that a "Material Adverse Effect" (as defined in the Credit Agreement) had occurred and, as a result, were not permitted to convert the outstanding construction loans into term loans maturing in 2014 as provided under the Credit Agreement. The Company disagrees with the lenders' assertion that a Material Adverse Effect has occurred and, with its financial advisers, is engaged in continuing discussions with the lenders and their advisors. The Company expects to reach a resolution with the lenders with respect to this matter, although there can be no assurance that it will do so.

The above description is only a summary of the Consent and the material changes to the Credit Agreement and the Account Agreement as effected by the Consent and does not purport to be complete. You are advised to refer to (a) the actual Consent, which is attached to this report as Exhibit 10.1 and incorporated by reference herein, for the full details of the terms thereof and (b) the actual Credit Agreement and Collateral Account Agreement, which have been filed with the SEC as Exhibits 10.2 and 10.3, respectively, to the Company's Amendment #1 to Registration Statement on Form S-1 (file no. 333-139203) on January 24, 2007, for the full details of the terms thereof.