Country singer Willie Nelson is probably feeling a good deal of sympathy these days for the company that manufactures the biodiesel product that bears his name.
The Fort-Worth Star Telegram reports that creditors of Earth Biofuels, the maker of BioWillie brand biodiesel, are trying to force the company into declaring bankruptcy.
The creditors – which include five investment banks holding at least $33 million worth of bonds in the company – have filed an involuntary bankruptcy petition under Chapter 7 of the federal bankruptcy statute.
Earth Biofuels lost $25.5 million in the first quarter of 2007 and $67.5 million in all of 2006.
For its part, the company said in a statement that the creditors’ actions were “unnecessary,” and vowed to continue producing biodiesel.