Ethanex Energy to file for bankruptcy

Basehor, Kan.-based Ethanex Energy (OTC: EHTE) is getting out of the ethanol game, announcing that it plans to file for bankruptcy protection.

The development-stage company, formed in 2006, said it failed to secure interim financing of at least $1.5 million for its proposed acquisition of a Nebraska ethanol plant and has terminated the agreement.

Last November, the company said it would buy the facility from Nebraska's Midwest Renewable Energy for $220 million in cash and stock (see Ethanex buying Nebraska ethanol plant from Midwest Renewable).

In a filing with the U.S. Securities and Exchange Commission, Ethanex said "in light of its declining liquidity and its inability to obtain interim financing, the company terminated the employment of all employees other than Albert Knapp, David McKittrick and Lisa Hallier and ceased ongoing commercial operations."

Knapp is president and CEO of Ethanex, while McKittrick serves as CFO. Hallier's title was not disclosed.

The company previously had 11 full-time employees.

Ethanex said in November that the 26 million gallon per year ethanol plant in Nebraska was undergoing a two phase expansion to produce 111 million gallons per year.

The company did not say where it planned to file for bankruptcy, but said it is "working with bankruptcy counsel to prepare for a filing and anticipates filing for bankruptcy protection in the immediate future."

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