Biofuel Energy restructures debt, resolving massive hedging losses

In Colorado, Biofuel Energy reported that it has reached agreements with Cargill and two of its debt holders regarding massive hedging losses incurred by the company last year. The parties agreed on a debt repayment plan in which total debt was reduced to $11.4 million, while Cargill agreed to forego interest through November and to charge 5 percent interest as of this month. Subordinated debt will accrue 5 percent interest until Cargill’s debt is repaid, down from a previous interest rate of 15.8 percent. The company operates two 115 Mgy corn ethano, plants in the Midwest.

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