Georgia Plant Files Chapter 11

Operations to continue during reorganization
By Holly Jessen | March 10, 2011

High corn prices, feedstock delivery delays via rail and operational issues were cited as reasons for a bankruptcy filing by Southwest Georgia Ethanol LLC. The 100 MMgy ethanol plant in Camilla, Ga., announced in early February that it had filed for bankruptcy protection. The company also said it would continue to operate as a debtor-in-possession and will continue to purchase corn.

The plant’s parent company, First United Ethanol LLC, did not file for bankruptcy and will continue to manage the plant. A reorganization plan is being devised to restructure its debts and pay off creditors. To accomplish that, the company is working with Morgan Keegan & Company Inc., McKenna Long & Aldridge LLP, its banking syndicate and the court, says Alicia Shirah, director of communications.  

—Holly Jessen