Nova Biosource Fuels runs out of gas

Nova Biosource Fuels (AMEX:NBF), a biodiesel refiner and marketer, announced today that the NYSE Amex has suspended trading of the company's stock and intends to delist it.

The move comes four days after Nova filed for bankruptcy relief under Chapter 11 and after several months of receiving non-compliance notices from the Exchange.

The company stated it does not intend to take any further action to appeal the Exchange's delisting decision. It is expected that Nova’s securities will be delisted after the completion of the Exchange's application to the Securities and Exchange Commission.

The company posted a net loss for the quarter ending Jan. 31, 2009, of $11.1 million, the last period reported.

Nova also announced it has appointed Brent King of Prairie Financial Advisors, as vice president/chief restructuring officer of its companies. In his new position, King is to be responsible for the bankruptcy process and financial operations of the companies.

Blank Rome serves as bankruptcy counsel in connection with the Chapter 11 cases.

Nova Biosource Fuels refines and markets ASTM D6751 grade biodiesel and related co-products by using what the company calls proprietary technology to convert more than 25 different types of feedstocks for a lower price point.

Nova owns two biodiesel refineries: one in Seneca, Ill., with a nameplate capacity of 60 million gallons per year, and one in Clinton, Iowa, with a nameplate capacity of 10 million gallons per year. The company partners with Gavilon to market the biodiesel and sells it at truck stops to commercial fleets.

The company previously said it planned to build up to seven biodiesel plants, with production capacities ranging from 20 to 100 million gallons each (see Nova Biosource buying Iowa biodiesel refinery).