Gateway Ethanol defaults on $53 million note

By | June 02, 2008
Six weeks after Gateway Ethanol LLC halted ethanol production in Pratt, Kan., to restructure its finances, it defaulted on a 2006 note acquired to fund the 55 MMgy dry-grind facility.

Notice was posted in a quarterly U.S. Securities and Exchange Commission filing April 17, one week after Minneapolis-based Dougherty Funding LLC notified Gateway Ethanol of the $53.4 million default. The plant's SEC filing indicated that it was working with Dougherty Funding to resolve the matter and disputed that the loan was in default.