US biofuels business files for bankruptcy

Texas-based advanced biofuels business Terrabon has filed for chapter seven bankruptcy.

The company’s operations will cease and a trustee will be appointed to help liquidate its assets for the benefit of creditors.

The reason behind the bankruptcy, according to a statement from Terrabon, was the lack of forthcoming additional corporate funding to finish development of its first commercial-scale plant.

The planned financing round for this year was due to be lead by Waste Management (WM) and involve other investors. However WM pulled out in August citing ‘cutbacks in our overall capital investment’.

Approximately 60 employees will now become redundant.