The Alexandria subsidiary of one of the world’s largest wood pellet producers has filed for bankruptcy protection, the result of higher-than-expected costs and construction delays.
Louisiana Pellets Inc., which has a production plant in Urania, asked the U.S. Bankruptcy Court for protection from its creditors while the company reorganizes.
Wood pellets have been touted by European firms as a renewable energy source and a handful of wood pellet plants have popped up in Louisiana as well as a transit center at the Port of Greater Baton Rouge.
Louisiana Pellets is owned by German Pellets GbmH, which announced on Feb. 11 that an insolvency court had appointed an administrator to safeguard the company’s assets. The court also will assess the company’s business prospects.