(Sioux Falls, S.D.)– Shares of Verasun Energy, which accounts for about 13 percent of the nation’s ethanol capacity, were suspended today (Monday) on the New York Stock Exchange as the company seeks 190 million dollars to make its payroll.
Shares of Verasun fell 52 percent to 23 cents before trading was cut off.
Verasun has filed voluntary petitions for relief under chapter 11 of the U.S. Bankruptcy Code.
Analysts say larger players in the industry remain sound but that crude prices have been halved since July must rise for smaller operators to survive.
The Sioux Falls-based company says in a court filing it would not able to make this week’s payroll without help. Verasun says it also needed money to buy corn, natural gas, pay for leases and other costs.
Analysts say near-zero profit margins, freezing credit markets and bad bets on commodities were all contributors.
(Story from the Associated Press.).
