Abengoa Bioenergy files for Chapter 11
This action follows the filing of two separate involuntary bankruptcy proceedings in Nebraska and Kansas earlier this month concerning the company’s starch ethanol facilities located in Ravenna and York, NE; in Colwich, KS; and in Portales, NM, and motions have been filed in the Nebraska and Kansas courts to transfer those involuntary filings to St. Louis for consolidated administration.
The filings do not include the company’s starch ethanol plants in Mt. Vernon, IN and Madison, IL, nor do they include the new cellulosic ethanol facility in Hugoton, or certain other subsidiary companies of Abengoa Bioenergy, which continue to operate in the ordinary course. Antonio Vallespir, President and Chief Executive Officer of Abengoa Bioenergy, said,
“Abengoa Bioenergy believes that this action is in the best interests of the company, the plant employees, and the creditors of each of the affected companies. Filing and consolidating the cases in St. Louis will provide for a more efficient and less costly administration of these cases in one location, and gives our companies the potential to resume operations and generate revenues at the more profitable of these facilities. It also provides the opportunity for a coordinated and supervised reorganization or sale process, while still allowing each involved debtor company substantial control over its own costs, debts and assets. Abengoa S.A. is currently in the process of negotiating a viability plan for the global organization of the company and aims to maintain business activity in all areas. Under Spanish law, Abengoa is in the process of restructuring its debt through a process that protects the company from claims from creditors.
The company said that the changes are expected to streamline operations and maximize resources.
Jim Lane is editor and publisher of Biofuels Digest where this article was originally published. Biofuels Digest is the most widely read Biofuels daily read by 14,000+ organizations. Subscribe here.