Beatrice Biodiesel is the property of Minnesota-based AgStar Financial Services after Agri Energy Limited, the parent company of U.S. Canadian Biofuels, filed Chapter 7 bankruptcy on Wednesday.
Beatrice Biodiesel attempted to final Chapter 11 bankruptcy on Aug. 21, but was later forced into filing Chapter 7, said David Blythe, former managing director for Beatrice Biodiesel.
No further information about the bankruptcy filing was available on Friday.
Beatrice Biodiesel became a part of local residents’ vocabulary in March 2006 when it was announced the plant would be built in the Gage County Industrial Park. Construction began in August of that year and was to be completed in fall 2007.
The million-dollar plant, designed to produce 50 million gallons of biodiesel annually and employ 25 people, was to be the largest biodiesel plant in the United States. It also was to be the first U.S. plant to use technology from Axens, a large European petroleum firm.
But the plant faced several setbacks in construction and in the biofuel industry as construction overruns and the rising cost of soybean oil delayed start-up, according to Daily Sun archives.
As a result, about 20 companies and businesses filed more than $3.8 million in liens for unpaid services, according to the Gage County Register of Deeds office.
Contractors that filed liens in the range of a half-million dollars or more included Rush Creek Construction, $660,905; Heartland Crane Service Co. LLC, $556,238; Mid-States Electric Co., $683,040; Amer Industrial Technologies Inc., $405,433; and Miller Insulation Co., $527,876, according to archives.
In March, Beatrice Biodiesel worked with its parent company on a recovery plan to bring in technology, resources and funding to get the plant in production. It never started.
The main thrust of the recovery plan was to bring in new technology to allow the plant to use other types of feed stocks as alternatives to soybean oil to produce biodiesel.
Attempts by Beatrice Biodiesel and Agri Energy Limited to find investors to buy Beatrice Biodiesel and provide more working capital failed.
Early this year, Agri Energy Limited announced the sale of its Beatrice Biodiesel assets due to unanticipated additional costs in construction and feed stock. That sale has been suspended.
Beatrice Biodiesel shut down construction several weeks short of completion in mid-February due to financial problems.
In March, Beatrice Biodiesel reached an agreement with Home Federal Savings Bank, which issued the construction loan, to allow Beatrice Biodiesel to liquidate certain collateral to provide a cash pool to complete core construction and attract potential buyers. So, construction was completed.
But in June, Beatrice Biodiesel was forced lay off employees it had hired in anticipation of beginning production.

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