Biodiesel firm with 2 plants in Colorado is closing doors

Rocky Mountain News

Published February 27, 2008 at 9:24 a.m.
Updated February 27, 2008 at 11:03 p.m.

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A company with two biodiesel plants in Colorado is going out of business after failing to secure financing.

A New Jersey bankruptcy court judge on Wednesday dismissed the Chapter 11 reorganization of BioEnergy of America Inc., the Edison, N.J.-based producer of biodiesel, or diesel fuel from vegetable oils.

Calls from the Rocky to its plants in Commerce City and Denver were not returned. The telephone number of its headquarters in Edison was disconnected.

BioEnergy's Web site said that the company produced 20 million gallons of biodiesel at its two Colorado plants and planned to open a 60-million-gallon facility in Edison last year.

On Feb. 4, it was forced to surrender a partially completed biodiesel plant in Edison to the landlord.

U.S. Bankruptcy Judge Raymond Lyons dismissed BioEnergy's filing Monday in Trenton, N.J. BioEnergy requested the dismissal, saying in court papers that it "is unable to operate its business and has no likelihood of rehabilitation" without the financing.

BioEnergy produced 15 percent of the biodiesel sold in the U.S. in 2005, court documents say. The company listed debt of as much as $50 million and assets of as much as $10 million in Chapter 11 papers.

• February 28, 2008

  4:38 p.m.

  Suggest removal

  butch_m writes:

  Sux.

• February 28, 2008

  8:15 p.m.

  Suggest removal

  EastVail writes:

  This is an example of consumers speaking with their wallets. Not their hopeless idealism.

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