U.S. Ethanol Giant Files For Chapter 11 Protection

Sioux Falls, SD (AHN) - One of the nation's biggest ethanol producers has declared bankruptcy, blaming the spike in corn prices in the futures market.

Verasun Energy, based in Sioux Falls, issued a statement that it had lost between $63 million and $103 million in the second quarter, according to UPI.

The company and 24 of its subsidiaries filed for Chapter 11 protection in the U.S. Bankruptcy Court in the District of Delaware this week, a Verasun press release issued Friday stated.

During Chapter 11 proceedings, the company plans to resume normal operations "to ensure continued supply of product to its customers and to fulfill all customer obligations," according to the press release.