MorrisAnderson Successful Plan of Reorganization of an Ethanol Producer

Industry: Energy/Oil & Gas

Renova Energy

Boise, Iowa


Ethanol Plants. $75 million sales. $140 million debt. 3 plants in 3 states and 3 intertwined Chapter 11 cases.

  • Unfinished Idaho plant with numerous mechanics’ liens.
  • Protect profitable Wyoming plant and marketing distribution business while maintaining corn supply and customer base.
  • Three bank group at odds with each other including separate counsel, all adversarial to London owners.
  • Complexity of absent UK owners in a small Wyoming Bankruptcy Court filled with New York attorneys representing the stakeholders.
  • 1st day Motion on consensual DIP financing finally approved after 60 days.


  • MorrisAnderson engaged as Chief Restructuring Officer to manage the bankruptcy process.
  • Increased good ethanol yield at Wyoming plant with introduction of chlorine to mitigate infection issues.
  • Renegotiated critical corn contracts.
  • Terminated UK management and their excess /no value costs.
  • Cost reductions on rent and accounting services.


  • Profitable Wyoming plant and marketing distribution business with confirmed Plan of Reorganization, saving 50 jobs.
  • Three bank group now new owners of profitable business.
  • One of few ethanol businesses emerging profitably from Bankruptcy.
  • Idaho plant assets transferred to mechanics’ lien holders.