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Kansas City ethanol company shutting down
KANSAS CITY, Mo. (AP) -- Alternative Energy Sources Inc. is closing its doors after being unable to raise enough money for a proposed ethanol plant in Iowa and failing to expand its ethanol management consulting business.
In a securities filing Wednesday, the Kansas City-based company said its remaining employees would be furloughed next Tuesday and that it expected to take a $3.1 million charge for shuttering the business.
About $2.5 million of that cost is related to its failed attempt to build a 110 million-gallon a year ethanol plant in Boone County, Iowa.
The plant, announced in August 2006, was expected to create about 45-55 jobs and a payroll of between $2.5 million and $3.5 million.
Mark Beemer, the company's chief executive officer, will also serve as chief financial officer as the company closes down. Also, four of the company's directors resigned following a board meeting Monday, the company said.
Ethanol companies, at one time a booming business, have struggled in recent months as financing has dried up and corn prices have soared. Another Kansas City-based ethanol producer, Ethanex Energy Inc., filed for bankruptcy in March.
Alternative Energy indicated in April that it may have to close down if it couldn't find financing and that it was trying to expand its consulting business. Last month, the company filed a $1.65 million lawsuit against Florida attorney Louis Zehil for alleged insider trading of the company's stock.
Information from: The Kansas City Star, http://www.kcstar.com