Aventine Says It May Seek Bankruptcy Protection

By DIRK LAMMERS

SIOUX FALLS, S.D. (AP) — Ethanol producer Aventine Renewable Energy Holdings Inc. said late Monday it may need to seek Chapter 11 bankruptcy protection if it cannot raise sufficient cash in the very near-term.

Shares dropped 13 cents, or 46.4 percent, to 15 cents in Tuesday morning trading, having hit an all-time low of 12 cents earlier in the session. The stock has traded in the range of 19 cents to $7.86 during the past year, and is off nearly 57 percent since January.

"Although we are actively pursuing a number of liquidity alternatives, including seeking additional debt and equity financing and a potential sale of all or part of the company, there can be no assurance we will be successful," the company said in its quarterly earnings report.

Pekin, Ill.-based Aventine said it does not expect to have enough cash to satisfy a $15 million interest payment due April 1 on an outstanding senior unsecured 10 percent fixed-rate note or to pay $24.4 million due to its engineering and construction contractor, Kiewit Energy Company.

Aventine late Monday reported a loss of $36.9 million, or 86 cents per share, during the fourth quarter of 2008 compared with a profit of $3.3 million, or 8 cents per share, during the year-ago period.