Greenhunter faces AMEX delisting as biodiesel producer struggles to maintain valuation in biodiesel meltdown

In Texas, Greenhunter received notice from the American Stock Exchange that it has not met certain of the minimal conditions for continuing to list on the Exchange. The company, which operates the nation’s largest biodiesel plant, has been hit hard by the biodiesel crisis.

The company’s stocks has fallen from a 52-week high of $23.81 to $0.97 at closing yesterday, with a market cap of $20.46 million, or twenty cents per gallon of biodiesel capacity, well under the construction cost of its assets.

Earlier this year, the 105 Mgy GreenHunter BioFuels biodiesel plant in Houston sustained damages in a fire, caused by a mechanical failure in a process heating unit. Damages from the fire were estimated by GreenHunter at less than $50,000 and the plant is expected to be offline for three days.

Last November, GreenHunter Biofuels confirmed that it is back online and producing at the company’s 105 Mgy biodiesel plant in Houston. The plant had been idled by Hurricane Ike earlier this year. Management said that the plant has achieved 65 percent of full capacity just prior to the hurricane, but did not indicate a production ramp-up schedule. The company however did confirm that the plant would continue to use 100 percent animal fats and residue as feedstock.

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