Australian ethanol plant hits financial troubles

Owing millions to creditors, the Dalby Bio-Refinery Ltd. ethanol plant in Australia is going through a formal insolvency process. Located in Queensland, the ethanol plant is now under the receivership of Ernst & Young Australia, with plans in place to continue producing ethanol while seeking to sell the plant.

An Australian receivership is similar to when a U.S. company files for Chapter 11 bankruptcy, Adam Nikitins of Ernst &Young told EPM. The difference is that rather than being a company-led process, a receivership is a creditor-led process, where the secured creditor or creditors can put their representatives in place to take control of the business. In this case, the current management team will remain in place and the plant will continue producing ethanol.

“The appointment of a receiver is disruptive,” he said. “However, we are especially pleased with the level of support we have received from stakeholder groups. The support we have received from key suppliers, off-takers and the management team has meant the business has been stabilized quickly and we are back to business as usual.” Nikitins specifically thanked the plant management team, led by CEO Kevin Endres, for their outstanding commitment to getting the business back on track.

source: ethanolproducer