US Ethanex to file for bankruptcy protection

25 March 2008 21:29  [Source: ICIS news]

TORONTO (ICIS news)--Ethanex, a Kanasas-based bio-ethanol firm, will seek bankruptcy protection after failing to secure interim financing for its projects, the company said in a regulatory filing on Tuesday.

 

Citing declining liquidity and its failure to obtain adequate financing, Ethanex said it has already ceased ongoing commercial operations and has terminated all staff except three executives.

 

A $220m (€143m) deal to acquire and expand a 26m gal/year ethanol plant in Nebraska had been cancelled, it added. 

 

Ethanex said last year it planned to expand the unit at Sutherland, Nebraska, to 111m gal/year.

 

“Although the company’s board of directors has not formally authorised a bankruptcy filing or made a final determination that the company will seek bankruptcy protection, the company is working with bankruptcy counsel to prepare for a filing and anticipates filing for bankruptcy protection in the immediate future,” Ethanex said in the filing.

 

Ethanex’s Web site had already been taken off the Internet on Tuesday.

 

($1 = €0.65)

 

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By: Stefan Baumgarten
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