Aventine Renewables, an ethanol company, filed for bankruptcy last night, reports Reuters.
The company cited the narrowing spreads between ethanol and corn prices, as the reason it’s going under. Its CEO said gross margins have been negative since the middle of last year, due in part to fixed obligations to purchase corn and natural gas at above-market prices.
Last year ethanol maker VeraSun went bankrupt. It was purchased by oil company Valero for $477 million.
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