Hawaiian biomass producer Big Island Carbon files chap. 7 bankruptcy, failed effort to turn macadamia nut shells into activated carbon

11/27/12, "Biomass producer Big Island Carbon files Chapter 7 bankruptcy," Pacific Business News, J. Magin

"Big Island Carbon LLC, which spent some $50 million to build a biomass plant to turn Hawaii-grown macadamia nut shells into granulated activated carbon, has filed for Chapter 7 bankruptcy.

The company, which has not started commercial operations at the Kawaihae plant, has laid off all 25 employees, including CEO Rick Vidgen, who was let go on Oct. 9 along with Chief Operating Officer Fred Baker and Controller Gerald Gruber, according to documents filed with the U.S. Bankruptcy Court in Delaware, where the bankruptcy was filed on Nov. 5....

Big Island Carbon listed secured claims of $16.4 million, which includes a $5 million loan from Synergy Bank in McKinney, Texas, and $11.4 million in principal and interest to Kona Investment Holdings LLC, an entity created by Boston-based Denham Capital Management, which is the project’s majority owner and secured lender.

Adam Carte, an operating partner for Denham Capital, said the Big Island Carbon project — whose price tag started at $20 million before more than doubling to $50 million — ran out of funding, and the board of directors chose to file for bankruptcy while still searching for new investors."...via Free Republic






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