Hawkeye Renewables emerges from bankruptcy

By Luke Geiver | June 10, 2010
Posted June 22, 2010

Hawkeye Renewables LLC has announced the completion of a reorganization plan, and emerged from bankruptcy. Producing roughly 225 MMgy from the combination of corn-based ethanol plants in Iowa Falls, Iowa and Fairbank, Iowa the announcement came only seven months after Hawkeye Renewables initially filed in the U.S. Bankruptcy Court in Wilmington, Del. Hawkeye Energy Holdings LLC, which no longer owns the Iowa Falls and Fairbank plants, will continue managing the Hawkeye Renewables facilities, including its subsidiary, Hawkeye Gold LLC.

"It is important for farmers and producers who sell corn to Hawkeye Renewables to know that both plants are emerging from this process with significant working capital, minimal debt and a new balance sheet," said Jim Continenza, the newly elected chairman of the board of Renewables. "We believe the financial future of the two plants has been stabilized and the two plants will continue to make positive contributions to their local communities."

Hawkeye Energy Holding's plants in Menlo, Iowa and Shell Rock, Iowa were not part of the reorganization as neither plant filed for bankruptcy. During the filing period, Hawkeye Renewables received authority to honor obligations to employees, customers, creditors and suppliers, allowing for normal operations.

In connection with its bankruptcy, Renewables debt was converted into equity and the principal equity owners of Renewables following emergence are its former first lien debt holders, who represent a number of recognized investment firms, according to a statement by Hawkeye Renewables.