A Kansas City investment firm has purchased a bankrupt Nebraska ethanol plant with the goal of getting it back on line by next year.
Spectrum Business Ventures (SBV) bought the assets in Chapter 11 bankruptcy of E3BioFuels in Mead, Nebraska, a patented, closed-loop ethanol production facility that both opened and subsequently shut down in 2007.
According to a company release, SBV secured a super senior position in the facility while financially restructuring it to operate profitably.
“Without SBV’s expertise in deal structuring and negotiations, this deal would not have gotten done. This is a win for the plant, a win for SBV and a win for the industry,” stated Dennis Langley, former Chairman and CEO of E3 Mead.
The Mead plant was the first-ever closed-loop system developed to produce commercial quantities of ethanol using methane gas recaptured from cow manure. The system combines a 25-million-gallon ethanol refinery, beef cattle feedlot, and anaerobic digesters to maximize energy efficiency.