US District Court to stay out of New Energy Corp. auction spat

In Indiana, a US Federal District Court judge has ruled that the federal courts have no jurisdiction in the case of Houston-based Natural Chem Holdings who sought to buy the bankrupt New Energy Corp. ethanol plant in South Bend. Natural Chem lost out at an auction to two liquidators, Maynards Industries and Biditup Auctions Worldwide, who purchased the facility for $2.5 million January. The company felt the auction was illegal because the two companies teamed together to bid, but a bankruptcy court ruled the purchase was legal.