Investors set to lose $5 million in Central Illinois Energy bankruptcy

In Illinois, 74 investors may lose up to $5 million in the Central Illinois Energy bankruptcy case. The CIE plant was proposed in 2001 at a cost of $40 million; construction was halted prior to completion when costs had reached $130 million and the company filed for Chapter 11 bankruptcy.

Central Illinois Energy put its 37 Mgy Canton, OH ethanol plant up for sale after failing to secure $30 million in additional funding. Credit Suisse, the lead bank among the lenders, reportedly forced the sale. Construction firms had filed $20 million in mechanic’s liens against the company after after non-payment of construction and engineering bills for the plant.

Free Subscription to the Daily Biofuels Digest e-newsletter

Related Stories

Bankruptcy court OKs sale of Central Illinois to Credit Suisse; closing April 30; investors wiped out in 7-year development debacle

In Illinois, the sale of Central Illinois Energy to Credit Suisse is now expected to close April 30 after a federal bankruptcy judge approved the sale. Credit Suisse and the Central Illinois Energy Co...

Whitebox to make $80 million bid for bankrupt Central Illinois Energy

In Illinois, Whitebox Advisors will make a credit bid of $80 million for the bankrupt Central Illinois Energy ethanol plant. The plant's new owner will acquire technology problems, $22 million in mec...

Riverland Biofuels aims for $1.6 million in “lost” state grants as project resumes following bankruptcy

In Illinois, Central Illinois Energy has been renamed Riverland Biofuels and may be eligible for an additional $1.6 million in support from the state of Illinois. The state originally awarded a $4.5 m...

Judge approves sales process for Central Illinois Energy, turns down $25 million Florida offer

In Illinois, a federal judge has approved a sale process for the bankrupt Central Illinois Energy plant in Canton, while turning down an undisclosed Florida group who offered $25 million for the plant...

150 Mgy Patriot corn ethanol plant to open in summer in Illinois

In Illinois, Patriot Renewable Fuels is scheduled to open this summer and is now accepting bids for corn shipment, with first deliveries in July. The 150 Mgy plant will require up to 150,000 bushels o...

Central Illinois Energy to be auctioned March 20; bidders must top $80 million debt-for-asset swap proposal from Credit Suisse

In Illinois, the bankrupt Central Illinois Energy will hold an auction on March 20 to attract offers to top an $80 million debt-for-assets swap proposed by Credit Suisse Group, which holds $95 million...