Nova Biosource Fuels Files for Bankruptcy
NEW YORK --- Nova Biosource Fuels Inc. has filed for Chapter 11 bankruptcy to reorganize its biodiesel refining business, Reuters reported.
The company has up to $50 million of both liabilities and assets, according to the filing with the U.S. Bankruptcy Court in Delaware.
Nova Biosource produces diesel from animal-derived fats, greases and vegetable-based oils. The company website lists five refineries.
Nova Biosource joins a growing list of alternative fuel producers, including Verasun Energy Corp., that have filed for bankruptcy after a crash in energy prices that followed a period of rapid expansion.
Nova Biosource reported a first-quarter net loss of $11 million. There were 10 company affiliates included in the bankruptcy filing.