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luvmylabs23139
04-05-2011, 07:49 AM
So corn costs too much! Ethanol is a waste of money.

DUNDARRACH - Clean Burn Fuels, the state's first ethanol plant, has filed for Chapter 11 bankruptcy protection because of soaring corn prices, the company said Monday.
The filing comes almost a month after the Hoke County plant announced it had temporarily shut down production because of the cost of corn.
The company, founded in 2005, completed construction in August on the plant, which has an annual capacity of 60 million gallons.
"Soon after, corn prices more than doubled while ethanol prices did not keep pace proportionally with the rise in corn prices,'' said a statement from the company. "This imbalance persisted and worsened, creating operating losses that led to the cessation of operations in early March.
"Despite good faith discussions with its secured lenders and key vendors, the company has been unable to reach a consensual agreement on a proposal to return the plant to profitability,'' the statement said.
The company filed for Chapter 11 to preserve its assets while creating a plan to emerge from bankruptcy protection in late summer or early fall, the statement said.
"By that time, the new corn crop will be available, thus providing more clarity regarding the relative levels and stability of corn and ethanol prices," the statement said.
Clean Burn Fuels will then be able to better identify how much funding it will need to re-start and exit from Chapter 11 protection, the company said.
Current cash reserves will be sufficient to fund operations during the reorganization process, the company said.
Doug Archer, general manager, said plant officials hoped to return to production in the next two months. The last time corn prices soared was a little more than two years ago, he said. It lasted roughly seven weeks.
Once corn prices drop, he said, there would be a short lag time before the plant returned to production.
"What we think will happen is corn will go down, and ethanol will go up," he said.
About 30 workers are currently on furlough until that happens, he said. A few workers have remained on the job for maintenance and to prepare the plant for start-up, he said.
Hoke County Manager Tim Johnson said the bankruptcy filing could affect the $3 million in incentives the county had granted Clean Burn Fuels. Incentives included 500 acres on the county's industrial site and cash grants set to begin the sixth year after plant operations started.
Johnson said if the plant didn't meet the criteria in the contract with the county, the Board of Commissioners might not be contractually obligated to provide the incentives, depending on the contract.
"It hasn't changed as of yet, but it certainly could," Johnson said. "The (commissioners) would have to vote on it."
Archer said it was too early to know whether the terms with the county would change.
The company also collected millions from investors and $35 million in loan guarantees from the U.S. Department of Agriculture.
Clean Burn Fuels said it intends to continue working with its senior lenders, subordinated creditors, vendors and city and county representatives during the Chapter 11 process.
"This decision reflects our belief that this is the best way to protect the interests of all constituents while positioning ourselves to be ready to emerge from this process at peak operating efficiency,'' said Kirk Bradley, chairman of the board of Clean Burn Fuels. "The ethanol industry is facing extreme market conditions that are not expected to let up before the end of summer. Our employees, investors, lenders, vendors and community partners all came together to build North Carolina's first ethanol facility, and we want to ensure that it survives the current climate and emerges as a world-class facility.''
The company has asked the court for permission to continue paying employee wages and salaries and to provide employee benefits without interruption.
During the restructuring process, vendors and business partners should expect to be paid for post-filing goods sold and services rendered in the ordinary course of business, the company said.
Don Porter, executive director of Raeford/Hoke Economic Development, had helped recruit the business to the county's industrial site in Dundarrach. Porter said he didn't know what the future would bring for the plant, but he was encouraged by the Chapter 11 protection.
It could have been worse, he said. "I just hope that they're able to come out of it clean, and that corn prices will go down so they can get back to making to ethanol."

IowaBayDog
04-05-2011, 12:11 PM
There are a long list of plants/startups that have gone under here in Iowa for Biofuels. They were soliciting "investors" here several years ago, I'm sure lots of folks lost a bunch on their snake oil. ADM is building a huge plant south of town that seems to still be moving along but word is they have already converted to switchgrass methods before ever processing a kernel of corn for Ethanol.

Uncle Bill
04-05-2011, 02:31 PM
There are a long list of plants/startups that have gone under here in Iowa for Biofuels. They were soliciting "investors" here several years ago, I'm sure lots of folks lost a bunch on their snake oil. ADM is building a huge plant south of town that seems to still be moving along but word is they have already converted to switchgrass methods before ever processing a kernel of corn for Ethanol.


Same thing is, or will happen in Sodak, Dan. A program that was primarily designed to reduce some of the glut of over-production by farmers to maintain a price support, has become for many, a form of greed. All this, as you call it, "snake oil" has been sold to a batch of folks that saw this as a can't fail to get rich, but are now left holding the bag.

The environmental whackos are primarily to blame for the majority of problems like this. They have been selling their 'go-green' policy so long, it's now reached a ludicrous stage. It's again, the tail wagging the dog.

When will the real Americans wake up and understand we are being hoodwinked by the environmentalists, ACLU, the politically correct, and the other liberals turned socialist followers. Hopefully the TEA party believers will continue to work at returning this nation to what it once was.

UB

dnf777
04-05-2011, 02:34 PM
Corn is one of the most bizarre commodities in the world.

It has actually co-evolved with human-needs (financial and otherwise) to guarantee its continued propagation. Its succeeded wonderfully!

Look at how much we grow, then try to fix prices, then try to figure out what to do with all of it. We eat it, drink it, rub it on our bodies, it makes the boxes all the other stuff comes in, it fuels the trucks that deliver the stuff, its composes the tires that the trucks use.....

And we're figuring out how to increase yields as we speak! Its got us wrapped around its little stalks...

huntinman
04-05-2011, 02:36 PM
Corn is one of the most bizarre commodities in the world.

It has actually co-evolved with human-needs (financial and otherwise) to guarantee its continued propagation. Its succeeded wonderfully!

Look at how much we grow, then try to fix prices, then try to figure out what to do with all of it. We eat it, drink it, rub it on our bodies, it makes the boxes all the other stuff comes in, it fuels the trucks that deliver the stuff, its composes the tires that the trucks use.....

And we're figuring out how to increase yields as we speak! Its got us wrapped around its little stalks...

Amazing how much like oil it is...

Franco
04-05-2011, 02:44 PM
Ethanol's future should be based on the Free Market and not exsist as a government charity!

dnf777
04-05-2011, 03:18 PM
Ethanol's future should be based on the Free Market and not exsist as a government charity!

Define "free market". (that a rhetorical request)

Do you think a truly "free market" really exists, outside of baseball cards and comic books? I'm beginning to doubt it.

Franco
04-05-2011, 03:33 PM
It has been many, many decades since we have had a Free Market economy.

I am advocating that we return to it!

dnf777
04-05-2011, 04:51 PM
It has been many, many decades since we have had a Free Market economy.

I am advocating that we return to it!

I hear ya. Although once power has been seized (and that's what we're talking here, right?) its not relinquished easily. Those who control the markets are doing just fine, and don't want anything changed.

Franco
04-05-2011, 05:02 PM
I hear ya. Although once power has been seized (and that's what we're talking here, right?) its not relinquished easily. Those who control the markets are doing just fine, and don't want anything changed.

That is why we need to throw most of the old guard out of DC. It is the only way for the people to take back the government.

reason.com has a great article on this

dnf777
04-05-2011, 05:20 PM
That is why we need to throw most of the old guard out of DC. It is the only way for the people to take back the government.

reason.com has a great article on this

That might work.....as long as the "new guard" isn't bought and owned as well...

Locally, I have supported and met with GT Thompson (R-Pa) and Jason Altmier (D-Pa). Both made great (but different) proposals for health care. Both accepted contributions from our major blue player here. Both haven't took a squat to bring one iota of change to the status quo.