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The company, based in Denver, has $170 million in debt, and has missed $12.9 million in debt payments from September through March. It reported a $4.6 million loss for the quarter. It was the fifth losing quarter in a row, but the smallest loss.
Company owes $74 million
Bloomington-based Advanced Bioenergy, which owns ethanol plants in Huron and Aberdeen, S.D., reported a $1.7 million net loss in the three months ending in March, its fourth consecutive quarterly loss. The company sold a Nebraska ethanol plant last year, but still carries $74 million in debt. The company missed a $1.1 million principal payment in the quarter and was discussing with lenders how to address the problem, according to a regulatory filing.
Yet another struggling ethanol plant, Heron Lake BioEnergy, with $37 million in debt, lost $998,140 in the three months ending in April, its seventh consecutive quarterly loss.
The company last week solicited its 1,100 investors, including many farmers, to raise at least $5 million and possibly up to $12 million in a convertible debt offering, said CFO Mike Mattison.
The plant, 20 miles northeast of Worthington, has continued to operate. Earlier this year its owners voted to sell it to a group of financially stronger producers for $55 million.
But the deal later fell apart, forcing the board to seek fresh capital. Board members already have put up $1.4 million, Mattison said.
Staff writer Patrick Kennedy contributed to this report.
David Shaffer • 612-673-7090