On Tuesday, VeraSun Energy Corp., announced that its ethanol biorefinery in Janesville, Minn., a 110 million gallon per year facility, will be indefinitely delay. While this plant will not startup, VeraSun will continue operations at its 14 facilities across an eight-state region.
VeraSun is in the midst of reorganizing under Chapter 11 Bankruptcy. To enhance liquidity the company filed voluntary petitions last Friday. Financing to complete construction and startup the Janesville plant are not being provided by the secured lender, but VeraSun is working to secure financing.
Nearly 53 employees will be furloughed due to the decision to indefinitely delay startup. Slated to begin operations this year, the construction on the Janesville facility is nearly completed. Vera Sun acquired ownership of the biorefinery in April when it merged with US BioEnergy, which had begun constructing the plant in January 2007.