Fitch predicts new wave of US ethanol bankruptcies

In New York, Fitch Ratings has released a new report predicting a new wave of bankruptcies in a ‘shake down’ in the US ethanol industry similar to that seen in 2008/09.

The hedging which, according to the US Department of Agriculture, has protected plants until now from higher corn cost “presents its own distinct risks”, Fitch said, noting the example of VeraSun Energy, which collapsed after locking in corn at peak prices in 2008.

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