Center Ethanol’s Chapter 11 bankruptcy case to be dismissed

By Sarah Lizee

Olympia, Wash., Sept. 13 – Center Ethanol Co., LLC’s Chapter 11 bankruptcy case will be dismissed, according to a docket entry filed with the U.S. Bankruptcy Court for the Eastern District of Missouri.

Region 13 U.S. trustee Daniel J. Casamatta, who had requested the dismissal, said the debtor’s failure to purchase property insurance on its ethanol plant, one of the debtor’s main assets, poses a risk of substantial loss to the estate.

“A debtor that owns real property with structures must maintain insurance on the structures to protect both the estate and the public,” the U.S. trustee said.

Casamatta said the lack of property insurance can constitute cause to dismiss or convert, even when the plant is idle.

“Where, as in this case, the debtor has failed to purchase insurance to protect the debtor’s plant from loss, one of those statutory consequences – dismissal or conversion – should occur,” the U.S. trustee said.

“The financial burden that procuring property insurance may impose on the debtor does not affect this outcome.”

The St. Louis-based ethanol producer filed bankruptcy on July 12 under Chapter 11 case number 22-42087.

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