After a turbulent 2008, Show Me Ethanol is going in a new direction.
The board of managers for the company fired plant manager Greg Thomas and replaced him with Dennis Alt, as the general manager and chief restructuring officer.
Ray-Carroll Grain Growers General Manager Mike Nordwald did not have any comment on the change. Ray-Carroll Grain Growers is a stakeholder in the company and has agreements to be the plant’s ethanol supplier. RCGG is also the exclusive marketer of the plant’s animal feed by product.
Alt was brought in to rescue the state’s largest ethanol plant from default on construction loans. The loan agreement requires the company to hold 35 percent assets to total equity ratio.
According to a U.S. Securities and Exchange Commission filing on Dec. 30, 2008, the company had fallen to 27 percent.
In addition to bringing in Alt, the report says the company is going to strengthen risk management assessment and board oversight, and change the way it purchases grain.
Alt said the company would move from corn futures contracts to a cash purchase basis. The report says the company believes it will operate more efficiently under these changes. The report blames fluctuating grain prices as one of the reasons the company has had setbacks.
An earlier report also said an accident at the plant in September of 2008 caused the plant to shut down operations for a couple of days.
Another major setback last year occurred when former State Treasurer Sarah Steelman pulled the companies’ $48 million low interest loan off the table over what was perceived as a political stunt by many associated with Show Me Ethanol.
Alt said he did not know if the company would reapply for the loans now that Clint Zweifel has taken over the state’s Treasury Department.
The company is also in the midst of a critical cash call. A cash call is when investors are voluntarily asked to commit more capitol to its initial investment. If an investor chooses not to participate, they could lose some or all of the value of their investment.
Alt said he is optimistic the company will successfully obtain the required capitol. The cash call will run through January.
Photo: Trucks continue to roll in and out of Show Me Ethanol in Carrollton as new plans are implemented. (Photo by Dennis Sharkey/The Daily News)