Ethanol Producer Goes Bankrupt, North Dakota Taxpayers Out Millions

Another failure for economic development and government-managed energy markets:

In tough times, sacrifices must be made. However, VeraSun Energy does not anticipate putting anything on the chopping block in its recent bankruptcy filing.
The Sioux Falls, S.D. – based company filed for Chapter 11 bankruptcy protection late last week. The Fargo Forum reported in its Sunday issue that the company has $1.9 billion in debt and nearly $3.5 billion in assets. VeraSun’s biggest creditor is Wells Fargo Bank with $447.4 million in bond debt. . . .
VeraSun operates 17 ethanol plants in the upper Midwest including one in Hankinson, N.D. Taxpayers have shelled out millions to support just the Hankinson branch of VeraSun’s operations. The city of Hankinson is the recipient of a $1 million Economic Development Administration grant. The North Dakota Department of Commerce gave the city another $410,000 through a Community Development Block Grant. The state and county helped foot the bill for upgrading area roads. The city is in the process of giving the plant a property tax exemption. And the plant will likely qualify to receive more state funds through the Ethanol Production Incentive.

VeraSun claims that this bankruptcy won’t hurt the Hankinson plant, but with the ethanol industry in general needing more and more bailouts from the government (despite being an already heavily subsidized industry) is it really smart for North Dakota taxpayer dollars to be on the line like this?