VeraSun says 12 of 16 ethanol plants are shut

NEW YORK Jan 20 (Reuters) - U.S. ethanol maker VeraSun Energy Corp VSUNQ.PK, which filed for bankruptcy protection in October, said on Tuesday that 12 of its 16 ethanol plants are in "hot idle," or ready to operate, but not currently making the alternative motor fuel.

Two of the 12 plants that are in hot idle were awaiting their initial operation, said spokesman Mike Lockrem.

The 10 plants that had been working each have a work force of about 50 people. No workers have been laid off at those plants, Lockrem said. Workers were "wrapping up any production that needs to be completed" at each plant and doing maintenance on them, he said.

There had been previously announced furloughs at the two plants that have never opened.

VeraSun, which had been the second largest ethanol producer after private company Poet, filed for bankruptcy protection in October after it locked in expensive prices for corn and amid a lack of access to financing.

In December, company lawyers said all eight of the plants it had acquired earlier in the year from U.S. BioEnergy were in "hot idle."

For months, U.S. ethanol distillers have been losing money, or making only pennies per gallon, amid weak demand for fuel and volatile corn prices.

Last week, VeraSun received approval from a Delaware bankruptcy court judge to auction most of those plants by the end of March, according to court documents. Please click on[ID:nN16454649].

The four plants that are working are operating at "full rates," Lockrem said. (Reporting by Timothy Gardner; Editing by Christian Wiessner)