Biofuel Energy (BIOF) Hit Hard on Corn, Nat Gas Hedges

Posted by Tate Dwinnell | # |
12:03:04 pm on August 12, 2008

According to StreetInsider.com, Biofuel Energy (BIOF) has announced that it had realized approximately 26.1 million in losses resulting from closing out various corn, ethanol and nat gas hedges and has an additional 20 million in unrealized paper losses at current prices. 

The Company put the corn and natural gas hedges in place to minimize the impact of rising prices. However, the plummet in the corn market exposed them to large unrealized losses under its hedge contracts, and in mid-July, the Company began to receive margin calls from Cargill.

The company is pursuing an amendment to its bank credit agreement to improve its liquidity. 

Tags: biof, biofuel, corn, Ethanol, natural gas If you enjoyed this post, please consider to leave a comment or subscribe to the feed and get future articles delivered to your feed reader.

Comments