Posts Tagged bankruptcy
Ethanol Manufacturers Going Out of Business
Posted by Allen Smith in Fuel Costs on October 19th, 2009
Ethanol producers are feeling the crunch that was only a matter of time . . . the profit does not beat the yield. With one acre of land producing about 7,110 pounds of corn, that works out to being able to process 328 gallons of ethanol. Breaking it down further, it takes about 26.1 pounds of corn to make just one gallon of ethanol. You won’t hear much about it from the main news media, but ethanol manufacturers/producers are dropping along the wayside . . . they simply cannot make any money doing what they are doing. Huh? Who saw that coming?
Nearly every publicly traded ethanol company has filed for bankruptcy over the last year. These include VeraSun Energy, Aventine Renewable Energy Holdings and Pacific Ethanol, just to name a few. Ethanol producers are unable to survive. Large subsidies from Federal and State governments could help, but is still no guarantee. It was a huge undertaking across the country to move to the 10% ethanol/gas mixture, even when the “no-profit” talk was being discussed. Now, we see many ethanol producers filing bankruptcy.
What is also ironic, is the fact that some of the ethanol producers going belly up, were actually sold to oil companies . . . imagine that.
© 2009, AskTheTrucker. All rights reserved.
: bankruptcy, corn, ethanol, ethanol gas, filing, manufacturers, producers, profit
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U.S. Government to Own 72.5% of GM
Posted by Allen Smith in Politics, trucking on May 29th, 2009
Remember when the talk about the stimulus bail out money was all about “preventing” the auto makers from going into bankruptcy? We were told that by shelling out billions of dollars, maybe trillions, of OUR money . . . would insure that those companies would not have to file bankruptcy. Yet, we are seeing the filings anyway. Of course, we all know that the U. S. Government has no right to hold any kind of stakes in matters that do not fit within the Constitution.
Now, on Monday, June 1st, 2009 – General Motors is expected to file bankruptcy in U. S. Court along with the announcement of closing up to 14 of its plants. But do not fear! GM bondholders have agreed to a new deal that will leave them with 25% of ownership and the U. S. Government will walk away with 72.5% ownership, in a United States Auto Maker. The deal was made when GM asked for, and will receive, ANOTHER $30.1 billion of funds.
Chrysler, is working hard to convince the Government that by selling their assets to Fiat will be “best for everyone.” Chrysler, also is in bankruptcy. So far, the Government is not so sure. I would imagine the Government would think it’s best to sell to the Government!
So, here we are sitting back and watching this Administration taking over whatever they can. It doesn’t matter that the U. S. Constitution says it’s wrong . . . they are doing it anyway. Of course, all for the good of the “people.” Our Government now holds high stakes in the auto industry, the home mortgage industry and they are trying hard for the health insurance industry.
Bringing back the railroad system, as I’ve mentioned in prior posts, will bring about a loss in the trucking industry . . . even though 3800 trucking companies went out of business in 2008. I wonder what they have planned for trucking companies? What further “disaster” may be looming in the future that will give this Administration the maneuver they need to “buy out” trucking companies? Hey, we may all be drivers for the U. S. Government someday!
Sure, I’m being facetious, but is there anything you can say that would assure me otherwise? Only time will tell . . . but the way things are going right now, I would be willing to bet the possibilities are closer than we think. This is just the beginning . . . now, auto parts makers Visteon and Metaldyne filed for Chapter 11 protection for their U.S. operations.
“Power to the People” has become “Power to the Government.”
At least there is Ford . . . the one auto maker that REFUSED to take ANY of the stimulus package bail out. Now, that’s American!
© 2009, AskTheTrucker. All rights reserved.
: auto industry, auto makers, bankruptcy, chrysler, fiat, general motors, gm, health insurance, home mortgage, industry, metaldyne, railroad, stimulus, trucking, trucking companies, us government, visteon
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Two More Trucking Companies Bite the Dust
Posted by Allen Smith in trucking, trucking companies on May 21st, 2009
Boyd Logistics is one of two more trucking companies that closed their doors for business, due to the economic situation. Many drivers for Boyd had been working for weeks without pay, and now after filing bankruptcy, there is very little chance that the drivers will ever receive that much needed paycheck.
The other one, Eagle Express Trucking, cited state of the national economy, slow consumer spending and stalled manufacturing activity as the prime reasons for shutting down their trucking business, founded in 1981.
© 2009, AskTheTrucker. All rights reserved.
: bankruptcy, boyd logistics, eagle express trucking, economy, trucking, trucking companies
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