US Biofuels Maker Pledges Plants Against Debt Held by BlackRock

Steam rises from a stack outside an ethanol biorefinery in Gowrie, Iowa.

Photographer: Daniel Acker/Bloomberg

Troubled biofuels maker Green Plains Inc. has pledged the bulk of its ethanol plants as collateral to funds managed by BlackRock Inc. in exchange for more time to repay nearly $128 million in debt.

The Omaha, Nebraska-based company extended the payment deadline of its so-called junior mezzanine notes, held by BlackRock funds, for a second time. The delay has come at a price: nine of its 10 ethanol plants are now pledged against the debt, according to regulatory filings.