Aventine Files Chapter 11 Bankruptcy Protection

DIRK LAMMERS

SIOUX FALLS, S.D. (AP) — Ethanol producer Aventine Renewable Energy Holdings Inc. filed for Chapter 11 bankruptcy protection on Wednesday, the latest victim in an industry stung by volatile commodity prices and shrinking profit margins.

The Pekin, Ill.-based company warned last month that it may have to file if it could not raise sufficient cash in the near-term.

In its Delaware court filing, Aventine listed assets of $799 million with $491 million in debt. The company listed 30 creditors.

Chief Executive Ron Miller said Aventine is challenged by a difficult market environment, and the filing will allow it to operate without interruption.

"We will use the Chapter 11 process to more rapidly restructure our overhead, pursue potential investors, and definitively resolve our debt issues," Miller said in a statement.

Aventine last month said it did 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 Co.