Archive for Wednesday, March 26, 2008

Basehor company files for protection

March 26, 2008

Ethanex Energy Inc., a 2-year-old ethanol company, said it is planning to file for bankruptcy after being unable to gain interim financing.

In a filing this week, the company said it had ceased operations, dismissed all but three of its employees and expected to file for bankruptcy protection "in the immediate future."

It also ended an agreement to buy a Nebraska ethanol plant owned by Midwest Renewable Energy LLC for $50 million. It said it had been unable to raise the $1.5 million in interim financing it needed while it tried to fund the entire deal, which also included two expansions at the existing plant. The deal was valued at $220 million in cash and stock.

The company had originally planned to build three ethanol plants.

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