Tuesday, February 3, 2009
MGP Ingredients Inc. says it plans to leave the ethanol business and will temporarily shut down distillery operations in Illinois, requiring the temporary layoffs of 79 workers.
It also warned in a securities filing that it was in default of its credit facility and seeking additional financing "to continue as a going concern."
The Atchison, Kan.-based company said the Pekin, Ill., distillery operations will be shut down for 90 days. The shutdown will affect production of both fuel-grade and food-grade alcohol. Fourteen employees were already temporarily laid off last month, and today's announcement will affect another 65 this week.
Company spokesman Steve Pickman said fuel-grade alcohol makes up the bulk of the plant's production and "it's hard to speculate" whether all of those jobs will return following the shutdown.