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Alternative Energy Sources to shut down operations

June 27, 2008

In Missouri, Alternative Energy Sources will shut down this week after failing to find financing for its proposed 110 Mgy corn ethanol plant in Boone County, Iowa. The company had attempted to expand its operations into consultancy to avoid the shut down.

In April, Alternative Energy Sources filed a $1.65 million suit against Florida attorney Louis W. Zehil, alleging that the attorney made millions in illegal “short-swing” insider trading activity in its shares and warrants. Zehil, who at one time served as AES corporate secretary, is accused of duping at least six ethanol companies, and realizing $17 million from insider trading activities. One of those companies, Ethanex Energy, filed for bankruptcy earlier this year. lawyer The AES suit alleges negligence and harm to its reputation.

Ethanex Energy filed for bankruptcy in March after failing to raise $1.5 million in interim financing for a planned $220 million, three-plant acquisition in Nebraska. Ethanex Energy had announced that it would acquire the Midwest Renewable Energy ethanol plant in Sutherland, for $220 million in cash and Ethanex stock, in a series of three transactions.

Under the final agreement, Ethanex would have acquired  the existing 26 Mgy Midwest corn ethanol plant for $50 million, and subsequently acquire an additional 85 Mgy in production capacity under
development by Midwest. Total capacity for the plant would have been 111 Mgy upon project completion. The deal was initially announced in November.

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    Written by Jim Lane · Filed Under Producer News 

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