VeraSun puts start-up of ethanol plant on hold

04 November 2008 22:06  [Source: ICIS news]

HOUSTON (ICIS news)--Bankrupt US ethanol maker VeraSun Energy on Tuesday said it was indefinitely delaying the start-up of its 110m gal/year (416m litres/year) ethanol biorefinery in Janesville, Minnesota.

The announcement comes only days after the company filed for bankruptcy protection, citing shrinking liquidity and debts of $1.91bn (€1.51bn) from up to 5,000 creditors.

VeraSun said the secured lender of the Janesville plant had not provided the necessary financing to continue construction and start-up activities.

The plant was scheduled to begin operations prior to the end of the year, it said.

Most of the 53 employees at the unit will be furloughed immediately, according to the company.

VeraSun said it will continue operations at 14 other facilities it owns in eight US states.

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By: William Lemos
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