Deadline extended for GO Ethanol sale

TOLEDO - After months of talks and two days of bidding, a buyer still has not been found for Greater Ohio Ethanol.

Attorneys for the company and its creditors met in Northern District U.S. Bankruptcy Court on Friday to discuss the next step after two days of bidding failed to produce a buyer for the bankrupt ethanol plant.

U.S. Bankruptcy Court Judge Mary Ann Whipple adjourned the sale hearing scheduled for Friday, effectively giving the lawyers managing the plant's sale until Dec. 30 to come up with a buyer. The move came after Timothy Hurley, attorney for the bankrupt GO Ethanol, told the court that two days of bidding and negotiations earlier in the week ended with no acceptable bid.

Two companies submitted bids for the $150 million facility, but one did not conform with bid requirements set down by the court. The group representing the plant's debtors rejected the lone conforming bid.

"As of this moment the steering group has not received a bid that is acceptable," Hurley said.

The court was expected to accept or reject the sale of the property during Friday's hearing. Extending the date for the hearing will give the steering group more time to work with current bidders and may even allow time for other interested bidders to enter the game, Hurley said.

"Although the steering group has not accepted a bid, there is still considerable interest in the assets. There certainly is the expectation that that interest will be pursued," Hurley said.

At one point during the proceedings, Whipple asked for the amount of the bid that had been rejected. Hurley begged off, saying the process was still in the works.

Greater Ohio Ethanol began production in July and filed for bankruptcy protection less than five months later. President Greg Kruger has said a design flaw in the plant resulted in increased water usage and increased waste, which put the plant in financial trouble from the start. He said earlier he expects to receive far less than the $150 million building cost for the plant.

The Chapter 11 filing lists more than 200 creditors, including local investors and contractors. The City of Lima's utilities department is listed among the 20 largest unsecured claims with a $190,546 bill.

The next hearing on the sale is scheduled for 11:30 a.m. Dec. 30 at the Northern District court.