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'BioTown' ethanol firm files for bankruptcy

Norm Heikens
November 1, 2008
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The ethanol producer that planned to build a plant in Reynolds, the town where Gov. Mitch Daniels is attempting to showcase energy independence, has filed for Chapter 11 bankruptcy protection.

VeraSun Energy Corp. announced yesterday that it and 24 of its subsidiaries filed the voluntary petition yesterday in U.S. Bankruptcy Court in Delaware.

The Sioux Falls, S.D., company blamed the move on losses resulting from rising corn prices and tight credit. It said it intends to continue operating as usual.

VeraSun opened a plant in August 2007 at Linden, which is between Lafayette and Crawfordsville.

VeraSun's project in Reynolds, which is north of Lafayette, started in April last year. However, the company announced months later that it would suspend construction because ethanol prices had fallen. The plant was to have capacity to produce 110 million gallons a year.

In September this year, VeraSun said it had hired Wall Street firm Morgan Stanley to evaluate strategic options.

VeraSun trades on the New York Stock Exchange, where its shares have plummeted to 48 cents each from $17.75 as recently as December last year.

Not long after entering office in 2005, Daniels designated Reynolds "BioTown" and planned to demonstrate technology that could make the town independent of foreign oil. Reynolds also was to have shown how waste from nearby livestock farms could be used to generate electricity.

VeraSun operates plants in seven other Midwestern states.

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  1. So much for Eric Holder's conversation about race. If white people have got something to say, they get sued over it. Bottom line: white people have un-freer speech than others as a consequence of the misnamed "Civil rights laws."

  2. I agree, having seen three shows, that I was less than wowed. Disappointing!!

  3. Start drilling, start fracking, and start using our own energy. Other states have enriched their citizens and nearly elminated unemployment by using these resources that are on private land. If you are against the 'low prices' of discount stores, the best way to allow shoppers more choice is to empower them with better earnings. NOT through manipulated gov mandated min wage hikes, but better jobs and higher competitive pay. This would be direct result of using our own energy resources, yet Obama knows that Americans who arent dependent of gov welfare are much less likely to vote Dem, so he looks for ways to ensure America's decline and keep its citizens dependent of gov.

  4. Say It Loud, I'm Black and Ashamed: It's too bad that with certain "black" entertainment events, it seems violence and thuggery follows and the collateral damage that it leaves behinds continues to be a strain on the city in terms of people getting hurt, killed or becoming victims of crimes and/or stretching city resources. I remember shopping in the Meadows area years ago until violence and crime ended make most of the business pack you and leave as did with Lafayette Square and Washington Square. Over the past 10 to 12 years, I remember going to the Indiana Black Expo Soul Picnic in Washington Park. Violence, gang fights and homicides ended that. My great grandmother still bears the scares on her leg from when she was trampled by a group of thugs running from gun fire from a rival gang. With hundreds of police offices downtown still multiple shootings, people getting shot downtown during Black Expo. A number of people getting shots or murdered at black clubs around the city like Club Six on the west side, The Industry downtown, Jamal Tinsley's shot out in front of the Conrad, multiple fights and shootings at the skating rinks, shootings at Circle Center Mall and shooting and robberies and car jackings at Lafayette Mall. Shootings and gang violence and the State Fair. I can go on and on and on. Now Broad Ripple. (Shaking head side to side) Say It Loud, I'm Black and I'm Ashamed.

  5. Ballard Administration. Too funny. This is the least fiscally responsive administration I have ever seen. One thing this article failed to mention, is that the Hoosier State line delivers rail cars to the Amtrak Beech Grove maintenance facility for refurbishment. That's an economic development issue. And the jobs there are high-paying. That alone is worth the City's investment.

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