November 16, 2008

Is The Ethanol Industry On It's Deathbed?



Over the last couple of weeks there have been a large number of articles in the news about the troubles facing the ethanol industry. Many point to the recent bankruptcy filing by VeraSun as proof that ethanol industry is on it's last leg.

While there are several ethanol producers that have filed for bankruptcy lately, VeraSun, the nations second largest ethanol producer was by far the largest.

But there are signs that the situation is not as bad as it looks. Both POET and ADM has made statements recently that they may be considering buying assets from some of the ailing producers.

Another company that recently filed for bankruptcy, Greater Ohio Ethanol, has been actively trying to find buyers for the assets the company holds. According to an article published yesterday there are interested buyers out there.

The company is aggressively marketing its assets, it said in court filings Friday. A two-page summary of what's available was given to 200 interested potential bidders, and nine of them have asked for additional confidential business information.

If the situation was as dire as some have suggested I doubt there would be this kind of interest in buying their assets.

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