26 January 2009 22:34 [Source: ICIS news]
HOUSTON (ICIS news)--Shares in US biofuels company Panda Ethanol fell by 95% on Monday following news over the weekend that its Hereford subsidiary in Texas was filing for bankruptcy protection.
The subsidiary filed a voluntary petition for relief under Chapter 11 laws due to a funding refusal by one of the project’s leading banks.
Panda now plans to sell the 115m gal/year refinery, which was in the late stages of construction.
Panda’s shares had closed at 17 cents (€0.13) on Friday ahead of the bankruptcy announcement. The stock had plunged to 0.9 cents by late Monday in the over-the-counter market.
The RFA in September 2008 ran a television campaign that declared ethanol production in Hereford “epitomised the importance of ethanol to US energy and economic security”, referring to biofuels production in oil-rich Texas.
Panda Ethanol owned one of two biorefineries in Hereford; the other is owned by White Energy and has capacity for 100m gal/year, according to the RFA.
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