Spectrum Business Ventures Buys Ethanol Plant in Nebraska
Kansas City-based Spectrum Business Ventures Inc. has bought a Mead, Neb., ethanol plant and plans to reopen the shuttered facility next year.
The firm said in a Monday release that it acquired the assets of E3 BioFuels — Mead LLC out of bankruptcy. Financial terms of the deal were not disclosed.
In the release, Spectrum CEO Amit Raizada said the private investment firm had to restructure the plant’s muddled finances to get it back into operation.
“This deal is unique in that we were able to secure a super senior investment and make the company healthy again,” Raizada said. “We solved an extremely complicated problem and still positioned our capital on top of the stack.”
The $90 million E3 BioFuels plant opened in 2007 but never went into full-time operation after a boiler explosion and repair problems. It eventually filed for Chapter 11 bankruptcy protection. The plant includes a 25 million-gallon ethanol refinery and anaerobic digester, using manure from cattle raised on the property to create fuel and energy. The leftover grain from the ethanol process then is fed to the cattle, reducing transportation costs.
Amit Raizada formed Spectrum Business Ventures in 2002 after a career of developing wireless retail stores for AT&T and T-Mobile.