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SYRACUSE, N.Y. -- Sunoco Inc. is offering $8.5 million to buy the bankrupt NorthEast Biofuel ethanol plant in upstate New York, according to The Syracuse Post-Standard.
Philadelphia-based Sunoco outbid a consortium of companies that offered $1 million for the plant in Fulton, N.Y., Northeast Biofuels officials told the newspaper. Sunoco is interested in investing in and operating the plant.
A bankruptcy judge must still approve the sale. Northeast Biofuels sought bankruptcy court protection in January, the newspaper reported. Sunoco's offer is a fraction of the $172 million in claims lodged by the company's creditors. Several have filed objections to the proposed sale.
The $200 million ethanol plant never reached full operation because of design flaws that forced frequent shutdowns, according to the Post-Standard report.
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