VeraSun Energy files for Chapter 11; largest US ethanol bankruptcy
In South Dakota, VeraSun Energy began a new phase in a dismal year for the company when it and 24 subsidiaries filed for Chapter 11 bankruptcy in federal courts. The company reiterated in a statement that it had sustained large losses in the third quarter due to the spike in corn prices last summer.
The company said that it would resume normal operations, would not scale back raw material purchases, would continue to pay suppliers as well as pledging not to interrupt payroll. “Today’s filing allows VeraSun to address its short-term liquidity constraints as we navigate historically challenging market conditions while we focus on restructuring to address the company’s long-term future,” Don Endres CEO said. “We appreciate the loyalty of our employees, customers and suppliers during this challenging time.”
Endres has not yet responded to a Digest request for an interview to address its investment outlook as well as confirming its short term commitments.
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