VeraSun Shuts Down Dozen Plants

VeraSun Shuts Down Dozen Plants

VeraSun Energy Corp. announced that 12 of its 16 ethanol plants are shut down, as the company continues to work its way through Chapter 11 bankruptcy proceedings, according to Reuters.


Those 12 plants, according to a company spokesperson, continue to sit in ‘hot idle’ and could restart production in short order, the Reuters report states. VeraSun Director of Communications Mike Lockrem said that so far no workers have been laid off, and instead were finishing up any ethanol production remaining and conducting maintenance on many of the plants.

In December, company lawyers said all eight of the plants it had acquired earlier in 2008 from U.S. BioEnergy were in "hot idle." Many U.S. ethanol producers have been losing money for most of 2008, according to Reuters. Last week, a Delaware bankruptcy court judge approved a VeraSun motion to sell the seven U.S. BioEnergy plants at auction in March.

(Source: Reuters)