A Big Ethanol Casualty: VeraSun (VSE) Preparing To File Chapter 11 Bankruptcy

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01:12:21 pm on November 1, 2008

I  first wrote about the absurdity of ethanol in an article a couple years ago at Self Investors titled “Unintended Consequences of the Ethanol Boom“, highlighting food inflation, environmental destruction and the disgusting politicking surrounding it.  With a surge of companies all attempting to cash in on ethanol with IPOs, it was just a matter of  time before a few of them went belly up.  One of the largest ethanol producers around, VeraSun Energy (VSE)  announced late on Friday that is preparing to file for Chapter 11 bankruptcy.

Worsening capital market conditions and a tightening of trade credit resulted in severe constraints on the Company’s liquidity position,” the company said. It intends to work with lenders to secure “additional committed financing to provide adequate liquidity to fund operations in the normal course.”

I wouldn’t mind seeing them all go belly up.  Ethanol is not the answer.

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