AMES, Iowa, June 21 /PRNewswire/ -- Hawkeye Renewables, LLC ("Renewables") with ethanol plants in Iowa Falls and Fairbank, Iowa, announced it successfully emerged on June 18, 2010 from its Chapter 11 restructuring under new equity ownership. Renewables had filed a voluntary restructuring plan, which did not require debtor-in-possession financing, on December 21, 2009. Earlier this month, Renewables received confirmation of its Plan of Reorganization from the U.S. Bankruptcy Court in Wilmington, Delaware, which has been overseeing the Company's chapter 11 proceedings.
"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. Mr. Continenza further commented, "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."
Renewables produces approximately 225 million gallons of corn based ethanol per year. Renewables had received authority from the bankruptcy court to honor obligations to the unit's employees and customers as well as critical trade creditors and suppliers in the ordinary course of business, which enabled the plants to continue normal operations throughout the filing period.
Although the two plants are no longer owned by Hawkeye Energy Holdings, Hawkeye Energy Holdings will continue to manage Renewables' plants and its subsidiary, Hawkeye Gold, LLC, will continue to market Renewables' ethanol and distillers grains. The restructuring process did not include Hawkeye Growth plants in Menlo and Shell Rock, Iowa.
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 debtholders, who represent a number of recognized investment firms. The new equity owners of Renewables selected a new board of directors prior to the emergence of Hawkeye. The board of directors includes James V. Continenza (Chairman), Mark A. Beemer, Donald J. Draizin, and Steven C. Pumilia. Bruce Rastetter will also serve as a board member representing the Renewables management team.
About Hawkeye Renewables
Hawkeye Renewables of Iowa Falls, Iowa is an ethanol producer with plants in Iowa Falls and Fairbank, Iowa. Renewables specializes in ethanol and dried distiller grains and its facilities currently produce approximately 225 million gallons of ethanol production per year. For more information, please visit http://www.hawkrenew.com/.
Michael Freitag / Victoria Weld
Kekst and Company
SOURCE Hawkeye Renewables, LLC