Vancouver, Wash., ethanol plant files Chapter 11

VANCOUVER, Wash. - A company that opened a $200 million ethanol plant in Clatskanie (CLAT'-skah-ny), Ore., last year has filed for Chapter 11 bankruptcy protection.

The petition for reorganization was filed Jan. 28 in Portland, Ore., by Cascade Grain LLC of Vancouver. According to the filing the company has 50 to 90 creditors and owes a total of $3.6 million to the 20 largest.

Half of that amount, $1.8 million, is owed to Gailon Grain LLC of Omaha, Neb., for corn.

Production began in June but was halted Jan. 8 after tests showed the ethanol was contaminated.

In the bankruptcy filing, company officials say the plant has "at least two significant design defects" and deficiencies in construction and materials.

Nonetheless, Cascade Grain President Chuck Carlson says the company is committed to resuming production.

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