Willie Nelson’s biodiesel venture skirts bankruptcy with creditor deal

In Texas, Earth Biofuels said that it has executed a settlement agreement with a group of creditors that would dismiss the group’s petition for involuntary bankruptcy.

In the agreement, Earth Biofuels will issue securities to the creditors and execute a restructuring plan by March 2008.

Earth BioFuels will repay interest and fees plus more than $100 million in principal, and the company’s CEO will issue a limited personal guarantee. The company recorded a loss of $21 million on revenue of $4.8 million in the first half of 2007.

Last month, the Willie Nelson-backed company, in its latest SEC filing, expressed doubt over its ability to survive. The company’s stock remained flat on the news at $0.054. Earth Biofuels (EBOF.OB) is a component stock in the Biofuels Digest Indexâ„¢.

Free Subscription to the Daily Biofuels Digest e-newsletter

Related Stories

Willie Nelson’s Place, featuring BioWillie biodiesel, to open in Texas with restaurants and stores.

In Texas, Willie's Place at Carl's Corner will open south of Dallas, in Hillsboro. The biodiesel truck stop will feature Willie Nelson's BioWillie branded biodiesel, two restaurants, a convenience sto...

E85 pioneer General Motors readying for bankruptcy? June 1 deadline

In Michigan, reports surfaced that the US Department of the Treasury has ordered General Motors, recipient of $13.4 billion in federal aid, to prepare a "fast bankruptcy" as soon as June 1st, despite ...

Willie Nelson to headline opening of Willie’s Place at Carl’s Corner; biodiesel, entertainment center at legedary Texas truck stop

In Texas, Earth Biofuels announced that Willie Nelson will perform today and tomorrow (Feb 24-25) at Carl's Corner Truck Stop to celebrate the official opening of "Willie's Place at Carl's Corner". Wi...

World’s largest biodiesel fueling station and concept park, Willie’s Place, to open this week in Texas; Willie Nelson concerts, events planned

In Texas, the largest and most spectacular biodiesel complex in the world opens this week when Willie's Place, featuring BioWIllie biodiesel blends, opens with a private Willie Nelson concert near Wac...

Willie Nelson to perform at Sequential-Pacific Biodiesel launch in Oregon

In Oregon, Sequential-Pacific Biodiesel announced that it will open its expanded 5 Mgy waste oil biodiesel production plant this month with a concert headlined by Willie Nelson. Among investors in the...

$200 million Texas ethanol plant sold for $25 million to creditor; future of Panda Ethanol plant in question

In Texas, the U.S. Bankruptcy Court for the Northern District of Texas approved the sale of the Panda Ethanol plant at Hereford ethanol plant for $25 million in credit to a lending syndicate led by So...