Ethanol Maker VeraSun Files For Bankruptcy

[Purveyor]

VeraSun Energy, an ethanol producer that failed to foresee a drop in corn prices earlier this year, filed for bankruptcy protection Friday.

The Sioux Falls, S.D.-based company said it will continue to operate during bankruptcy, including making feedstock purchases and paying employees.

VeraSun, which claims to be the biggest ethanol producer in the United States, has run out of cash because of a change in its hedging strategy for purchasing corn. The global credit crisis has also hampered its ability to raise operating funds.

"Today's filing allows VeraSun to address its short-term liquidity constraints as we navigate historically challenging market conditions while we focus on restructuring to address the company's long-term future," CEO said Don Endres said in a statement.

Earlier this year, the company locked into corn prices at a time when heavy rains in the Midwest dimmed the prospect for this year's corn harvest. Ethanol, used as an additive to gasoline, is made primarily from corn today.

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CNET: http://news.cnet.com/8301-11128_3-10080914-54.html

[elocs]

1. Food crops should be used for eating and feeding human beings,

not being used for making fuel so we can continue to bee-bop around everywhere we want to go in our vehicles.

[Parche]

3. agreed

they should make it out of cellulite material....:hi:

[elocs]

4. Let me expand on this: acres used to grow nonfood crops for ethanol should be used

to grow food crops for human consumption. I don't think there is enough acreage in this country to grow enough of anything to make even a small dent in the amount of fuel this country needs.

[bemildred]

2. Another stupid idea leads to bankruptcy. nt