PEKIN (Commodity Online): Aventine Renewable Energy Holdings Inc, a leading producer of ethanol has a narrow escape from its Chapter 11 restructuring as the company announced its successful emergence from it on March 15, 2010.

The company board selected Thomas Manuel the company's new chief executive officer and chief operating officer. Manuel was also appointed to serve on the company's board of directors.

"Emerging from bankruptcy with good liquidity, modest debt and lower overhead costs, Aventine is well positioned to be one of the low cost providers of ethanol on a national basis," said Manuel. "I am very optimistic about the ethanol industry and our success going forward. We have put in place a strong leadership team with decades of experience,” he added.

Get Trading Tips just for one commodity

In February 2009, Aventine and its subsidiaries filed voluntary petitions under Chapter 11 of the U.S. Bankruptcy Code in the District of Delaware. The company had secured debtor-in-possession financing from its pre-petition unsecured noteholders that enabled the company to continue ongoing operations. The ethanol industry had faced recent difficult years with soaring corn prices and lower petroleum costs.

The company's plan of reorganization was confirmed on February 24 by the Hon. Kevin Gross of the U.S. Bankruptcy Court for the District of Delaware.

"The ethanol industry has sound long-term prospects, and we anticipate a strong rebound as the biofuels mandate continues to increase," Manuel said. "Aventine will emerge as a much stronger business with all the key pieces: a restructured balance sheet, excellent liquidity, and a committed group of employees led by a new senior management team."

Post your comment  (0)

Connect:

Post to Twitter

Post to Facebook