The board of directors of PLCP LLC indicated that the measure was necessary to avoid continuing losses.

"Increased corn prices on forwarding contracts obtained during the summer and recent decreasing prices for ethanol have negatively impacted the company's net worth," a Pine Lake statement said.

"The company remains optimistic about restructuring its obligations and renewing manufacturing activity in the future."

In addition, investor-owned AltraBiofuels Inc. and its wholly owned subsidiary Altra Indiana LLC will indefinitely lay off employees and close the doors to the $170 million, 92 million-gallon-per-year Cloverdale, Indiana, fuel ethanol plant, construction of which was completed in May.