Southwest Georgia Ethanol seeks extension of period to solicit votes

By Jim Witters

Wilmington, Del., Sept. 1 - Southwest Georgia Ethanol LLC is seeking an extension of its exclusive period for soliciting acceptances of its Chapter 11 plan, according to documents filed Thursday in U.S. Bankruptcy Court for the Middle District of Georgia.

The exclusive period for soliciting acceptances is scheduled to end on Oct. 4. The debtors wish to extend the period through Nov. 30.

The debtors assert that the extension is warranted because of the size and complexity of the case, with assets and liabilities of more than $100 million.

The debtors say the additional time is needed to "negotiate and prepare adequate information" on which those eligible to vote on the Chapter 11 plan can base their decisions.

The filing also states that the debtors are making good faith progress, they are paying their debts as they come due, that the debtor has demonstrated reasonable prospects for filing a viable plan and they are not requesting the extension to pressure creditors.

Southwest Georgia Ethanol filed its plan of reorganization and related disclosure statement on Aug. 26.

Southwest Georgia Ethanol is a wholly owned subsidiary of First United Ethanol LLC, a Pelham, Ga.-based ethanol producer. The subsidiary filed for bankruptcy on Feb. 1. The Chapter 11 case number is 11-10145.

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