Friday, October 10, 2008

Gateway Ethanol files for bankruptcy

Gateway Ethanol files for bankruptcy


The Wichita Eagle

Gateway Ethanol LLC filed for reorganization protection, listing assets and debts of between $50 million and $100 million.

The case, before Judge Dale Somers, proceeds to a creditor's meeting at 11 a.m. Nov. 10 at U.S. Bankruptcy Court, 500 State Ave. in Kansas City, Kan.

In documents filed Sunday, Gateway lists Cargill's grain and dry divisions in Minneapolis, Minn., as its largest unsecured creditor, at $7.38 million.

Only one Wichita firm, Jeff Spencer & Associates, 10305 E. 19th North, is on that list, seventh at $50,049.66.

Numerous Wichita-area firms are listed as other creditors in the filing, including Allied Environmental Consultants, Delta Dental, Grant Thornton, Kansas Fire Equipment, Kennedy & Coe and Univar.

The filing comes two weeks after a Minnesota-based investment bank holding more than $63 million in debt on the plant asked to have it placed in emergency receivership, according to the Associated Press.

The request in late September by Dougherty Funding LLC noted that the plant has been shut down.

The lender claimed Gateway officials informed Dougherty that the company "only had enough cash to continue operations for approximately 'another week or so.' "

The $100 million plant began operating in late October 2007, with between 35 and 40 employees, the AP reported.

further complications in the ethanol industry

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