Major US Ethanol Producer Files for Bankruptcy Protection. By Dawn McCarty and Tiffany Kary, BloombergNews, November 1, 2008. "VeraSun Energy, the second- largest U.S. ethanol producer by capacity, sought bankruptcy protection after racking up losses on hedges for corn, a raw material used to make the fuel. The petition for Chapter 11 bankruptcy in Wilmington, Delaware, listed both assets and debt of more than $1 billion. The Sioux Falls, South Dakota-based producer and seller of ethanol, formed in 2001, has 16 production facilities in eight states, and an annual capacity of around 1.64 billion gallons of ethanol, according to its Web site. Twenty-four affiliates also filed. Verasun temporarily shut production at its plant in Linden, Indiana, on Oct. 28 without giving a reason. The company's shares have plunged 89 percent since Sept. 16, a day before it said it may report a third-quarter net loss of as much as $103 million because of bad hedging bets."
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