Alternative Energy ethanol company shutting down
Jun 26, 2008 (The Kansas City Star - McClatchy-Tribune Information Services via
COMTEX) -- Alternative Energy Sources Inc. is ceasing operations after being
unable to expand its ethanol management consulting business and failing to raise
money to build an ethanol plant.
The Kansas City ethanol company, in a filing Wednesday with the Securities and
Exchange Commission, said it would take a $3.1 million charge for closing the
business, including $2.5 million associated with its proposed ethanol plant in
Boone County, Iowa.
Alternative Energy said its remaining employees will be "furloughed" next
Tuesday. The company did not provide the number of workers.
Mark Beemer, chief executive officer, will also serve as chief financial officer
as the company winds down.
After a board meeting Monday, four company directors resigned: Lee L. Blank, W.
Gordon Snyder, John D. McNamara and A. Michael Espy, who served as agriculture
secretary during the Clinton administration.
Ethanol companies have struggled recently as financing has dried up and corn
prices have risen. Another Kansas City ethanol company, Ethanex, filed for
bankruptcy earlier this year.
Alternative Energy signaled in April that it would have to cease operations if
it didn't find financing and said it was concentrating on expanding its
consulting business. In May, the company sued Louis Zehil, a Florida attorney,
for $1.65 million for allegedly engaging in insider trading of the company's
stock.
To reach Steve Everly, call 816-234-4455 or send e-mail to severly@kcstar.com.
