Friday, March 20, 2009

Aventine Renewable Energy May Declare Bankruptcy

Ethanol producers are hurting badly as the market for ethanol has leveled off and the industry capacity is exceeding demand at this point in time. Several ethanol producers have had serious drops in revenue and it is starting to show in the industry.

Aventine Renewable Energy Holdings Inc., which last Friday announced the layoff of 25 people and on Monday said it lost $47.1 million in 2008, is facing possible reorganization bankruptcy in the near future, CEO Ron Miller said Wednesday.
"Bankruptcy is out there as a possibility. It's highly dependent on re-establishing the demand for ethanol," he said of the corn-based fuel.

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