AL - Selma wood pellet plant files for Chapter 11

The Dixie Pellets plant owned by a unit of Harbert Power Fund III, has filed for Bankruptcy Court in Birmingham

Email this story to a friend

Description

Selma plant files for Chapter 11:

The alternative fuel plant in Selma that put 70 people out of work this month has filed for Chapter 11 bankruptcy protection, citing more than $100 million in debts.

The Dixie Pellets plant is 86 percent owned by a unit of Harbert Power Fund III, according to a filing made Monday in U.S. Bankruptcy Court in Birmingham. That company is an affiliate of Birmingham's Harbert Management Corp., whose associated companies invest in stocks, real estate, power plants and other assets

The plant turned wood shavings and chips into pellets burned as a substitute for fossil fuels. The largest customers were in Europe, where utilities get government subsidies to burn the pellets.

Chapter 11 bankruptcy filings allow businesses to continue operating while they reorganize their debts. For the year ended July 20, the plant had a loss of $14 million on sales of $11.4 million, the filing says. Russell Hubbard --

Additional Information

Web Site: http://www.al.com/business/birminghamnews/inc.ssf?/base/business/1253002529283850.xml&coll=2

Category: Forestry>Wood Pellets

Region: Alabama

Ad Running: 9/16/2009-10/16/2011

Ad Posted: 9/16/2009 5:22:03 AM

Ad Viewed: 751 times

Create your
Buy & Sell Ad