Thursday, January 15, 2009

"Advanced BioEnergy" Ethanol Company Seeking Merger or Sale

The failed ethanol industry has another company about to go under, as Advanced BioEnergy (ABE), which owns three ethanol plants, is in the process of looking for merger partners or selling the company outright.

It's already defaulted on a $10 million loan in October 2008, and is in even bigger trouble now, as its operating at a $13.1 million net loss while debt has risen to about $211 million, according to the Cleveland Research Company.

Besides selling the company outright or a merger, other considerations are to issue more debt, sell some of its operating assets or equity securities.

This is just the typical example of almost every ethanol company in the U.S. Just let this propped up illusory industry die. Not only is ethanol destructive to snowmobiles and most other small engines, but even with the waste of taxpayers' dollars it still can't even come close to turning a profit.

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