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Tight Credit Could Hurt Small Ethanol Companies
By Mr Ethanol | August 21, 2007
Reuters:
The tightening credit market will likely crimp the expansion plans of small players in the U.S. ethanol industry, but it will not curtail the growth of larger companies, a VeraSun Energy Corp. executive said on Monday.
“I think that there will be less capital that will flow to greenfield projects, new companies,” Verasun Chairman and Chief Executive Don Endres said in a telephone interview. “I think private investors are looking to invest capital in the public companies because they have liquidity.”
It takes a long time for investors to see returns from investments in new ethanol companies, and that makes it harder for small, private firms to attract capital in this market, Endres said.
Builders already have reported that very few small-company projects are moving forward. Continue reading…
Topics: Ethanol, Market, Negatives |
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