ABE is currently operating at a $US13.1M net loss with debt mounting to around $US211M, due primarily to the construction of its Nebraska plant.

Cleveland Research Company reported that ABE "is reportedly considering the sale or divesture of operating assets, a merger, the issuance of additional debt and/or sale of equity securities".

Show Me Ethanol of Missouri is also under financial hardships.

It reportedly requested permission from its shareholders to ask for $US10 million in additional funding through a voluntary capital contribution and a capital call of about $4800/share.

If the money is not raised, the company will have to file for bankruptcy.

VeraSun also shuttered 330 Mgy in capacity in Albion, Nebraska, Linden, Indiana, and Bloomingburg, Ohio.

Although no construction has begun at Boot Hill Biofuels in Kansas, the plant filed bankruptcy Dec. 23, 2008, after one of its creditors, Biofuel Venture I, filed a involuntary bankruptcy petition against the company on Dec. 1.

The company's president is hopeful construction can begin and explained a reorganisation of its bankruptcy status could help the company buy some time before moving forward.

The bankrupt outfit has $US4 million in unsecured debt, including half of that owed to leading designer of ethanol plants, ICM.

In financial statements filed with the US Bankruptcy Court in Wichita, Kansas, Boot Hill showed $498,056 in assets which is personal property and total income from 2006 through 2008 was $82,580 - all from interest income.

Boot Hill has a meeting with its creditors in the Wichita court Jan. 23.