Georgia’s First United Ethanol, struggles with $100 million debt load, facing possible bankruptcy; owners optimistic

In Georgia, the 100 Mgy First United Ethanol (FUEL) plant said that it may be facing shutdown and bankruptcy after the company filed papers with the SEC showing debts of $100 million and foreshadowed a possible chapter 11 filing, although company officials said that ethanol economics were improving and that it expected to make all scheduled payments to lenders.

The Camilla-based plant shut down in January, after opening last fall, when it  suffered a rupture in a collared joint that resulted in a steam blow-off.  The $185 million project , which opened last October after completing construction in August 2008, was the first large-scale ethanol plant in the US Southeast.

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