Bioenergy company files Chapter 11
By MATEUSZ PERKOWSKI
An eastern Washington company that builds bioenergy equipment has filed for Chapter 11 bankruptcy protection, which allows companies to restructure debt while staying operational.
Borgford Bioenergy of Colville, Wash., submitted its bankruptcy filing on July 16, listing estimated debts of $1 million to $10 million. The company reported assets of $1 million to $10 million.
The company received roughly $5 million in federal economic stimulus funds in 2009 to build a renewable energy "co-generation" plant aimed at producing electricity, steam and specialty wood products, according to the U.S. Energy Department.
The grant was intended to restart a defunct sawmill in Stevens County, Wash., and replace a propane-fueled system for drying lumber with "combined heat and power" equipment that burns wood waste, the agency said.
Capital Press was unable to reach the company or its attorney for comment as of press time.