High grain prices and high transportation costs have forced Plymouth Oil of Merrill, Iowa to file for Chapter 11 bankruptcy.
Dave Hoffman of the Plymouth Oil says the company's board felt this was the best move to pay off their debts. Hoffman says Plymouth Oil had hoped to obtain corn germ from their neighbors next door, Plymouth Energy, but those plans fell through.
He says the plan is to keep operating and paying bills. The plant started operations in February of 2010 and specializes in producing food products from corn, such as corn oil for cooking purposes.
Hoffman says the decision was in the best interest for both the company's investors and creditors.