Buyer wanted for idle Mississippi biodiesel plant

By Dave Nilles | November 10, 2006
A Maryland company is seeking a buyer for a Mississippi biodiesel operation that has been idle for more than a year. Equity Partners Inc. is seeking a buyer for Biodiesel of Mississippi Inc.'s (BMI) plant in Nettleton, Miss.

BMI operated the facility for approximately nine consecutive months before ceasing operations in the first quarter of 2005, according to Equity Partners' Ken Mann. The company filed Chapter 11 bankruptcy in February 2006.

At press time, Equity Partners was in the process of re-opening the plant to allow for site visits by potential bidders. The plant is capable of producing 60,000 gallons of biodiesel per day using two 40,000-gallon batch reaction tanks, according to an Equity Partners release. The facility's 3.9-acre site also includes two grain storage bins, a grain elevator and truck scales.

Based in Pasadena, Md., Equity Partners provides investment banking services exclusively for businesses operating in Chapter 11 or suffering from financial distress. Mann said BMI has received a stalking horse bid, which is an initial bid on a bankrupt company's assets. This bid method allows the distressed company to avoid low bids on its assets.

Once the stalking horse bid is made, other potential buyers may submit competing bids for the bankrupt company's assets. Mann said he expects a court hearing Friday to establish the bid procedure for the project. Bidding is expected to begin in January on the plant.

Dave Nilles is Online Editor for Biodiesel Magazine. Reach him at [email protected]or (701) 373-0636.

Posted: 11:27 a.m. CST Tuesday, November 14, 2006
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