Aventine explores keeping assets, as ethanol crush spread quadruples

In Illinois, Aventine Renewable Energy has indicated a potential change of direction in reorganization under bankruptcy. Previously, the company had been looking at an outright sale, or sale of assets. According to a report in the Financial Times, the company is now exploring a plan that would convert senior unsecured notes to equity and bring in a cash injection from a number of hedge funds.

The improvement in ethanol’s crush spread from $0.15 in June to $0.65 today is a catalyst for the switch.

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