VeraSun has released its third quarter financial statement and the news is not good. While the ethanol company's revenues ending
"We are working diligently to secure financing in order to maintain operations during these unprecedented, difficult market conditions," said VeraSun CEO Don Endres. "Ethanol margins continue to suffer while our industry continues to increase capacity at the same time as demand for transportation fuel is being reduced."
Endres says in order for the
During the quarter, VeraSun reported a $118.6 million loss on derivatives and a mark-to-market loss of $40.1 million. The mark-to-market loss consists of an inventory valuation adjustment of $12.9 million and a loss on open forward corn purchase contracts of $27.2 million. The loss was partially offset by a $7.5 million gain related to the sale of corn inventory for the quarter.
Earlier this month, VeraSun announced it had "terminated" chief financial officer Danny Herron. No reason was given, and Bryan Meier, VeraSun's vice president, finance and chief accounting officer, has assumed Herron's duties.
Additional information about VeraSun's bankruptcy and third quarter financial condition are available at their Web site, www.verasun.com.