July 1, 2008

  

US biofuel plants pushed to bankruptcy by high corn prices

   
  

Ethanol companies, once the darling of investors are now falling by the wayside as dozens file for bankruptcy under the yoke of high construction costs, tight credit and soaring corn prices.

 

Under such conditions, even industry giant Verasun has delayed plans to build more facilities.

 

Alex Moglia, president of a biofuel restructuring advisory group, said that about 12 small to midsize biodiesel and ethanol plants have declared bankruptcy in recent months, and more could follow.

 

The latest victim of high corn prices was Renova Energy LLC, a company that owns a partially built 20 million-gallons-per year ethanol plant in Idaho. The company claimed bankruptcy last week.

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