Death comes to us all. Life's but a walking shadow | The seriousness of the short term problem for the ethanol plant itself notwithstanding this is so typical of this kind of investment holding companies. They buy up otherwise good companies (sometimes at inflated prices) and then can't service the debt. We're having the same situation with our electric companies here now. A Spanish mega company bought up two or three of our major electricity & gas utilities, loaded the debt on them and now can't pay the debt without astronomical electricity rate increases. The same thing happened a couple of years ago with the Italian milk processor, Parmalat. They bought up a whole slew of milk processing companies worldwide, briefly became the world's biggest and went bankrupt leaving behind a bunch of broken and broke companies loaded with debt. Most of these companies were doing just fine before they were bought up.
It all has to do with the greed of the original owners, the investment companies and the stupidty of government watch dogs. It's a free market system alright. A free market to do stupid things.
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Abengoa news story
