(Reuters) – Ethanol producer White Energy Inc filed for Chapter 11 protection in a Delaware bankruptcy court on Thursday, citing adverse market conditions, court documents showed.
In court filings, the company said that while cost of raw materials to produce ethanol were high, excess supply of ethanol in the market has kept ethanol prices low, resulting in “minimal or non-existent profit margins.”
White Energy listed assets and liabilities in the range of $100 million to $500 million in its Chapter 11 filing.
Companies like VeraSun Energy Corp (VSUNQ.PK) and Aventine Renewable Energy (AVRNQ.PK) have sought bankruptcy protection in the last year, as a sharp jump in the number of production plants in the industry has put pressure on individual ethanol producer margins.
The Dallas, Texas-based company said its combined operations generated over $500 million in revenue in 2008.
White Energy has three ethanol plants in Kansas and Texas, according to the company’s website.
The case is In re: White Energy Inc, U.S. Bankruptcy Court District of Delaware, No.09-11601. (Reporting by Santosh Nadgir in Bangalore; Editing by Anil D’Silva, Jarshad Kakkrakandy)
peHUB Note: White Energy shareholders include Columbus Nova.