HOPEWELL, Va. (AP) — The former operator of an ethanol plant in Hopewell is now planning to pay its debts under Chapter 11 bankruptcy protection after several of its creditors tried to force the company to liquidate.
The Richmond Times-Dispatch (http://bit.ly/1QL9T0M ) reports that Vireol Bio Energy LLC received approval Dec. 14 from the U.S. Bankruptcy Court in Richmond to convert its case to a Chapter 11 bankruptcy, which enables companies to work with creditors on a plan to pay debts.
Several of the company's creditors, including Dominion Virginia Power, had asked the court in November to force the company into an involuntary Chapter 7 liquidation of its assets, saying they were owed more than $2 million.
Vireol, a subsidiary of a United Kingdom-based company, announced it was suspending production in August, citing falling gasoline prices.
Information from: Richmond Times-Dispatch, http://www.timesdispatch.com