Bankrupt VeraSun Plans To Cancel Common Stock

LOS ANGELES (Reuters) – Bankrupt ethanol maker VeraSun Energy Corp (VSUNQ.PK) on Friday filed a plan of liquidation with a bankruptcy court that would cancel all shares of its common stock.

Under the plan, which is subject to approval by the U.S. Bankrtuptcy Court in Delaware, shareholders would not receive anything for their shares.

VeraSun was the biggest U.S. publicly traded ethanol maker when it filed for bankruptcy protection last October. The company faced a cash crunch after locking in costly contracts for corn, the main ingredient for ethanol in the United States.

In March, U.S. refiner Valero Energy Corp (VLO.N) won an auction for seven VeraSun facilities. The company bid about $477 million.

(Reporting by Nichola Groom; editing by Carol Bishopric)