BioFuel Energy not facing bankruptcy or other dramatic outcome, analyst says
Raymond James analyst Pavel Molchanov, in a note to investors in BioFuel Energy regarding its liquidity crisis, wrote that “there is a realistic prospect of obtaining additional working capital, and we believe management’s roadmap toward resolving this liquidity crisis by year-end is credible. Therefore, at this point, we do not foresee bankruptcy or some other drastic outcome.” BioFuel Energy posted a loss of $0.41 per share for the second quarter and has racked up $46 million in hedging losses this year when corn prices eased.
