PRATT, Kan. (AP) _ The collapse of the ethanol boom continues as a Pratt-based ethanol producer is the latest to file bankruptcy.
Gateway Ethanol LLC has filed for Chapter 11 bankruptcy protection, estimating it owes between $50 million and $100 million.
The filing comes weeks after Minneapolis-based Dougherty Funding LLC sought to have Gateway placed in emergency receivership to preserve any money being returned to creditors. It says Gateway defaulted on a $54.3 million loan used to begin production 11 months ago.
Gateway joins a number of other ethanol producers that have closed their doors or gone bankrupt in the past year as the cost of corn and grain ingredients have gone up and oversupply has forced ethanol prices down.
Information from: The Kansas City Star, http://www.kcstar.com
(Copyright 2008 by The Associated Press. All Rights Reserved.)