Posted on 10/08/2008 8:41:04 AM PDT by thackney
The collapse of the ethanol boom continues as a Pratt-based ethanol producer is the latest to file bankruptcy.
Gateway Ethanol LLC has filed for Chapter 11 bankruptcy protection, estimating it owes between $50 million and $100 million.
The filing comes weeks after Minneapolis-based Dougherty Funding LLC sought to have Gateway placed in emergency receivership to preserve any money being returned to creditors. It moved to foreclose on the company’s plant in May, saying Gateway defaulted on a $54.3 million loan used to build the facility.
In a motion field in the U.S. District Court of Kansas in September, Dougherty noted that the plant was closed. The lender stated that Gateway officials informed Dougherty that the company had only enough money to operate “’another week or so.”’
Orion Ethanol Inc. owns 62 percent of the company, which is publicly held and started operating only 11 months ago. Orion said the plant’s annual capacity was 21 million bushels of corn and grain sorghum.
Using food staple for gas is a stupid idea.
They need to call Paulson for some of that 700B pocket change he’s carrying around.
Bail ‘em out, I say. $50 million is chickenfeed (no pun intended) Liquor is a much better use of ethanol than fuel. Hey! That means a whole new business government can get into! Don’t booze and movies do well in recessions?
Subsidize that!!
Due to a continuing health problem, I have to drive 320 miles to Gainesville, Fl to the University of Florida Shands Hospital twice a month. I fill up here in Ft. Walton Beach with pure gasoline and can drive all the way there on one tank with some left over. There, all gasoline is 10% ethanol, even national brands. I cannot fill up and make it all the way back here on one tank.........Ethanol is a big rip-off!..............
Ethanol is a big rip-off!..............
and it’s nasty stuff too.
two little facts that nobody told anybody about ethanol...it may be 30% cheaper, but your engine burns hotter, and you get half the mileage out of a gallon of it versus gasoline.....it actually costs more to use the cheaper ethanol...
30% Cheaper? From Tallahassee on east, pretty much all gasoline is 10% ethanol. It costs the same as regular 100% gasoline......
I agree, once again we’ve been had.
ETHANOL WAS THE SUBPRIME MORTGAGE OF THE ENERGY INDUSTRY.
The ethanol industry was the Fannie Mae of energy.
Of course it is going under.
Good, ethanol has been a scheme to scam since it’s inception.
So how much of the $50 million is long term debt? And was this simply because of the temporary lifting of the gasoline formulations dried up demand and caused the firm a short-term cash crunch?
i am speaking of pure ethanol....10% derivitives still drive down your mileage and make your engine run hotter, but the flex fuel vehicles that can burn pure ethanol are what i am talking about
Corn starch is a food staple?
All to often.
So dang hard to buy stuff without that or High-Fructose Corn Syrup in it.
Of course I could by food that comes in a peel instead of a box.
“up here in Ft. Walton Beach with pure gasoline and can drive all the way there on one tank with some left over. There, all gasoline is 10% ethanol, even national brands. I cannot fill up and make it all the way back here on one tank.........Ethanol is a big rip-off!..............”
Years ago we had the cancer causing MTBE mandated into our California gasoline.
I would fill up my OJ Simpson Bronco on drives from here to Brookings, Oregon up 101. On lucky days, we would coast into Brookings on Fumes. Sometimes we had to gas up in Eureka or maybe Crescent City.
On the way back, I would fill up with regular gas in Brookings, Oregon, drive all the way home and have over a quarter of a tank full left.
The same pattern happened if we drove up I5. Some where between Redding and Yreka, we would have to fill up. On the trip home I would fill up in Medford or Ashland and drive home with about a quarter of a tank of gas left without the mtbe.
We paid at least 10% more the known carcinogen MTBE and got 10-20% less mileage thanks to the Green Nazis.
Ethanol in medicinal quantities is good for you. Methanol IS bad for you.
This should put a smile on your face and make your steps to kick liberals a little more lively.
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