Colorado Wood Pellet Manufacturer Files For Bankruptcy

A Colorado-based company that says it is the largest wood pellet manufacturer in the western United States has filed for Chapter 11 bankruptcy. Confluence Energy LLC, which is based in Kremmling in Grand County, said in a Tuesday filing that it owes $14.95 million to between 100 and 199 creditors. The company listed assets of […]

A Colorado-based company that says it is the largest wood pellet manufacturer in the western United States has filed for Chapter 11 bankruptcy. Confluence Energy LLC, which is based in Kremmling in Grand County, said in a Tuesday filing that it owes $14.95 million to between 100 and 199 creditors. The company listed assets of $11.2 million. Companies use Chapter 11 bankruptcy protection to reorganize and help keep the business alive, paying creditors over time.

Confluence Energy is led by CEO Mark Mathis, who owns 43.5 percent of the company, according to the filing. Aaron Garber of Denver’s Buechler & Garber is representing Confluence Energy in the bankruptcy. Mathis and Garber did not respond to separate requests for comment.

According to Confluence’s website, Mathis founded the company in 2008 after going to a local store to buy pellets for his wood stove, only to learn there was a nationwide shortage. The company says its Kremmling plant is the biggest pellet plant west of the Mississippi.

According to a 2013 Denver Post story, Confluence faced headwinds around 2010, as lower oil prices reduced the demand for pellets. Mathis cut staff, from 34 to eight, and fended off an investor’s attempt to force him into Chapter 11 bankruptcy.

The company rebounded, in large part by branching beyond pellets. Confluence’s website says its product lines now include pet bedding, cat litter, agricultural enhancements, and a number of products used by the oil and gas industry. In 2013, the company acquired a competitor, Walden-based Rocky Mountain Pellets.

From BusinessDen.com: https://businessden.com/2018/08/17/colorado-wood-pellet-manufacturer-files-for-chapter-11-bankruptcy/

Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

POST A COMMENT

Your email is never published nor shared. Required fields are marked *

*
*

Subscribe

Looking to subscribe to Wood Bioenergy magazine? It's simple, just follow the link to our online subscription form and complete the required fields and submit. If you'd rather talk to a real live human being, feel free to give us a call at (800) 669.5613'

Contact

To contact Wood Bioenergy magazine, either call (334) 834-1170 or email us at [email protected]

TAG CLOUD