"A Going Concern." You Could Say That.
I've gotten several inquiries in recent days from Earth Biofuels shareholders wanting to know if there's any news concerning their, ahem, investment. Yes, indeed: This very week, the Dallas-based manufacturer and distributor of biodiesel, ethanol and liquid natural gas filed (late, again) with the Securities and Exchange Commission its latest quarterly report, in which the company reports that on September 10, there will be a hearing concerning its' creditors recently filing an involuntary Chapter 7 liquidation.
Says the report, "There are several outcomes that may occur pursuant to this hearing, any of which cannot be reasonably estimated at this time." Well, the company will likely be put to rest: By its own admission earlier in the report, Earth Biofuels -- which boasted an all-star board of directors, including the likes of Julia Roberts, Willie Nelson and Morgan Freeman -- admits, "Earth has incurred significant losses from operations and as of June 30, 2007, has limited financial resources. These factors raise substantial doubt about our ability to continue as a going concern." We're almost done here, looks like. --Robert Wilonsky