E-mail us: service@prospectnews.com Or call: 212 374 2800
Bank Loans - CLOs - Convertibles - Distressed Debt - Emerging Markets
Green Finance - High Yield - Investment Grade - Liability Management
Preferreds - Private Placements - Structured Products
 
Published on 2/27/2009 in the Prospect News Distressed Debt Daily and Prospect News PIPE Daily.

Nova Biosource Fuels to cut workforce, explore restructuring after financing talks fail

By Caroline Salls

Pittsburgh, Feb. 27 - Nova Biosource Fuels, Inc. is taking steps to reduce the workforce at its Seneca, Ill., and Clinton, Iowa, biodiesel refineries and the company's engineering and construction subsidiary in light of an unexpected breakdown in negotiations with a working capital financing source and the inability to secure other financing, according to an 8-K filed with the Securities and Exchange Commission.

Without additional financing, the company said the refineries do not have enough working capital to continue operations.

Nova said it is considering its restructuring options and is in discussion with Seneca refinery project lender WestLB AG.

According to the 8-K, Nova's board of directors has authorized management to idle the Seneca refinery and suspend plans for restarting the Clinton refinery.

The company said the Seneca refinery will remain operational until on-hand feedstocks and consumables have been processed into finished biodiesel and related co-products, at which point it is expected to be idled.

The duration of the shutdown is unknown, according to the 8-K.

Nova Biosource is a Houston-based energy company that refines and markets standard biodiesel and related co-products.


© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.