Aventine Renewable Energy officials expressed optimism about the future for ethanol this week as they emerged triumphant from bankruptcy.
The Pekin, Illinois-based ethanol producer announced its successful emergence from Chapter 11 restructuring on March 15, naming Thomas Manuel as the company’s new Chief Executive Officer and Chief Operating Officer.
“Emerging from bankruptcy with good liquidity, modest debt and lower overhead costs, Aventine is well positioned to be one of the low cost providers of ethanol on a national basis,” said Manuel. “I am very optimistic about the ethanol industry and our success going forward. We have put in place a strong leadership team with decades of experience.”
In February 2009, Aventine and its subsidiaries filed voluntary petitions under Chapter 11 of the U.S. Bankruptcy Code in the District of Delaware due to tough economic conditions for the ethanol industry had with soaring corn prices and lower petroleum costs.
“The ethanol industry has sound long-term prospects, and we anticipate a strong rebound as the biofuels mandate continues to increase,” Manuel said. “Aventine will emerge as a much stronger business with all the key pieces: a restructured balance sheet, excellent liquidity, and a committed group of employees led by a new senior management team.”
Aventine’s strategy is to be a low-cost, focused ethanol producer. The company also plans to resume as soon as possible the construction of its two partially completed 108 million gallon bio-refineries in Aurora, Neb. and Mt. Vernon, Ind. Both construction projects were within months of completion when work was suspended prior to Aventine’s filing for bankruptcy protection.


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The RFA is advocating for a long term extension of VEETC, the Small Producers Tax Credit, the Cellulosic Ethanol Tax Credit, and the offsetting tariff on imports. According to the study “Importance of the VEETC to the U.S. Economy and the Ethanol industry,” failing to extend the tax incentive would idle an additional 4.56 billion gallons of production, based upon the 2010 expectation of 12 billion gallons of domestic ethanol production.
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Over 100 fleet managers, city, state and county government representatives, fuel producers and distributors and fuel retailers gathered together Wednesday in Dothan, Alabama to become informed leaders for the state’s emerging biofuels marketplace. 


