Verasun, the second-largest Ethanol producer in the US, filed for bankruptcy this week, and managed to secure an emergency line of financing to get themselves back in business.

http://www.reuters.com/article/marke...42766020081104
http://www.bloomberg.com/apps/news?p...GPI&refer=home

While the original filing sounded very bad, securing $220 million in financing makes their situation look much better, longer term.

Verasun supplies E85 to all of the Gas City stations around here (Illinois), but they're based in South Dakota, and have 16 plants around the country, producing about 15% of the US domestic supply of ethanol.

 

Verasun is used in MD too. That's what we use out here. Just dropped down to $1.98

 

Verasun is the supplier to all of our Kroger E85 stations here in Columbus.

 

Interesting. Not sure what if means for the long run.

 

A little late, but here's an update on this. The bankruptcy court is forcing them to sell off some of their plants, basically. Valero is picking up seven of them, which is rather strange given that Valero is a mainstream oil company.

According to Wikipedia, VeraSun had 16 production facilities going into bankruptcy; this shrinks them quite a bit from their #2 producer position (#1 is Archer Daniels Midland).

 

I own 400 shares of Verasun Guess its a tax write off now...

 

I wouldn't sell them off just yet; this infusion of cash (along with reduced operating expenses with the sale of the seven plants) might just get them out of bankruptcy.

On the other hand, they might just tank completely and enter Chapter 13.

 

Not even worth selling since the stock price is 2cents...

I'll sell only if i need to take a loss to offset some gains which i don't have much of these days.