GreenHunter Energy, Inc announced yesterday that it had transferred ownership of GreenHunter Biofuels, Inc over to it's creditors. GreenHunter Biofuels owns a 105 million gallon per year biodiesel plant located in Houston, Tx.
To be honest, the press release is a little hard to read and understand. An article in the Dallas Morning News did a good job of explaining the situation.
GreenHunter Energy Inc. took a drastic step Friday to avoid being delisted next week by the New York Stock Exchange.
The Grapevine clean energy company gave a biodiesel refinery to debt holders. The move allows GreenHunter to shift into a more profitable business. It also reflects the peril the biodiesel industry faces.
GreenHunter said that it transferred all of the ownership shares of its GreenHunter Biofuels Inc. unit to a trust for holders of its 10 percent debentures due in 2012. GreenHunter had defaulted on the notes, and the company's Houston refinery was collateral for the loan.
The stock exchange had threatened to remove GreenHunter from its NYSE Amex Equities listing if the company didn't improve its financial condition, and the deadline is next week.