December 07, 2010
Spectrum Business Ventures, Inc. ("SBV") and affiliates have closed the purchase of the assets in Chapter 11 bankruptcy of E3BioFuels - Mead, LLC ("E3 Mead"). With closing, SBV properly collateralized all the necessary aspects of the patented, closed-loop ethanol production facility.
As part of the purchase, SBV secured a super senior position in the facility, as well as, financially restructured the facility so it can operate profitably.
The Mead plant is the first-ever closed-loop system for distilling commercial quantities of ethanol using methane gas recaptured from cow manure, instead of fossil fuels. This virtually eliminates the need for fossil fuels in the production of ethanol.
The patented, closed-loop system combines a 25-million-gallon ethanol refinery, beef cattle feedlot, and anaerobic digesters to maximize energy efficiencies unavailable to each component on a stand-alone basis. This system eliminates the potential for manure to pollute watersheds, and it enables the wet distillers grain from ethanol production to be fed on-site to cattle without energy-intensive drying and transportation costs.
AltEn is pursuing the necessary permits to begin ramping the facility up for production, which is anticipated in 2011.
Amit Raizada, CEO of SBV, commented, "This deal is unique in that we were able to secure a super senior investment and make the company healthy again. We solved an extremely complicated problem and still positioned our capital on top of the stack. Although these deals are difficult to accomplish, they are our trademark."
"Without SBV's expertise in deal structuring and negotiations, this deal would not have gotten done. This is a win for the plant, a win for SBV and a win for the industry," stated Dennis Langley, former Chairman and CEO of E3 Mead.
Source Press Release
See Also :
Sale Of E3 Biofuels Ethanol Plant Near Closing