Ethanol Production
The writing is on the wall.
Ethanol and other alternative fuel producers are feeling the sting of this economic downturn.
How can you tell?A number of national and regional producers have filed for Chapter 11.
The estimated ethanol plant value has declined from over $1/gallon of productive capacity to less than $0.40/gallon.
Projects for new production capacity have declined dramatically - despite an increase in EPA ethanol use targets
Several of BBK’s alternative fuel clients have been dealing with these issues. Your organization may be as well. As we have helped clients restructure and/or manage their businesses as they go through restructuring, we have seen several common trends emerge:
- Significant commodity price volatility making the management of cash more difficult
- Poor risk management of commodity revenues and costs
- Counter party risk reduction by lending institutions
Our unique value proposition - integrating financial and operational advisory services to deliver comprehensive, hands-on solutions - has been the foundation for remarkable successes in several engagements.
We don’t know what position your company is in, but it might make sense to schedule a brief, exploratory call where we can discuss how these concerns or challenges could impact you. Please contact Marcus Hudson or Keith Updike for more information.