Aventine facing Chapter 11 as cash runs out, critical payments due

In Illinois, Aventine Renewable Energy Holdings said that it may need to seek Chapter 11 protection. The company has defaulted on its senior debentures and a construction contract, has only $700,000 cash in hand, and according to biofuels analyst Pavel Molchanov, does not have sufficient gunds to meet April 1st interest payments. Molchanov wrote that his view is that a “Chapter 11 filing is imminent – within a few months if not weeks”. The company said that it was seeking additional debt and equity financing to meet its liquidity challenges.

Free Subscription to the Daily Biofuels Digest e-newsletter

Related Stories

Aventine Renewable Energy delists from NYSE after market cap falls; will trade on bulletin board although Chapter 11 filing may be imminent

In Illinois, Aventine Renewable Energy has been suspended from trading on the New York Stock Exchange, when the company's market capitalization fell below $15 million for more than 30 days. The compan...

Bankruptcy court approves first $15 million in new financing for Aventine

In Illinois, Aventine Renewable Energy said that the Bankruptcy Court has approved its debtor-in-possession financing package, permitting the company to access $15 million in financing, allowing the c...

Aventine seeks new investors for recap or sale

In Illinois, Aventine Renewable Energy announced today that, in addition to the parties that have already shown an expression of interest, it is now publicly soliciting other potential investor intere...

Georgia’s First United Ethanol, struggles with $100 million debt load, facing possible bankruptcy; owners optimistic

In Georgia, the 100 Mgy First United Ethanol (FUEL) plant said that it may be facing shutdown and bankruptcy after the company filed papers with the SEC showing debts of $100 million and foreshadowed ...

Aventine may delay construction on two plants; company had invested construction cash in illiquid securities; cash crunch looms

Aventine Renewable Energy said that it may delay construction on two plants because it cannot find buyers for $211 million in auction-rate securities that it had held as a near-cash investment, and ha...

Pacific Ethanol Chapter 11 now likely, says Raymond James analyst

In California, Pacific Ethanol reported a loss of $0.61 per share in the 4th quarter and has a negative working capital of $288 million.  Raymond James analyst Pavel Molchanov said that a Chapter 11 ...