VeraSun Energy Files for Chapter 11 Bankruptcy
Posted on Nov 3, 2008 11:22am PST
Today, numerous news sources are reporting that VeraSun Energy has filed for
Chapter 11 Bankruptcy protection. According to reports, VeraSun Energy filed for bankruptcy last Friday. VeraSun Energy is one of the United States largest producers of ethanol (a light, volatile alcohol that can be used for gasoline blending).
Top officials within the company say that the energy firm suffered substantial financial losses in the third quarter of 2008. The losses were incurred due to a huge increase its corn costs. The costs were attributed to procurement, hedging arrangements and also typical unfavorable margins.
The company wishes to resume its' normal operations while the Chapter 11 proceedings take place.
VeraSun Energy was founded in 2001. It has a fleet of 16 production facilities in eight different states. It also has an addition facility which remains under construction. Aside from producing ethanol, VeraSun produces E85, which is a blend of 85% ethanol and 15% gasoline. It is produced for flexible fuel vehicles.
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