UPDATE 1-BioFuel amends credit agreement, shares rise

(Recasts, adds details, share movement)

Aug 29 (Reuters) - BioFuel Energy Corp BIOF.O said it had amended its credit agreement to allow its subsidiaries full access to the $20 million working capital facility, sending its shares up more than 34 percent.

Prior to the amendment, the subsidiaries, which own and operate the Wood River and Fairmont ethanol plants, had access to $5 million of their working capital.

The company added that the operating subsidiaries now appeared to have sufficient liquidity to complete the commissioning of the ethanol plants.

The company realized about $36 million of hedging losses with U.S. agribusiness giant Cargill Inc [CARG.UL] and an additional $3 million in unrealized losses.

Cargill has not been paid about $22 million of this amount. BioFuel said it did not have sufficient liquidity to retire these obligations.

The operating subsidiaries have received about $25 million of corn inventory that it has not been reimbursed for. “Such reimbursement cannot currently be made,” the company said.

Earlier this month, BioFuel said it had realized losses due to closing out of various corn, ethanol and natural gas hedges with Cargill, sending its shares to a new lifetime low.

The company said it had hedged about 40 percent of its expected corn requirements for the third quarter, 30 percent for the fourth quarter and 12 percent for the first and second quarters of 2009.

BioFuel shares were up more than 23 percent at $1.46 Friday on Nasdaq. (Reporting by Adveith Nair in Bangalore; Editing by Anil D’Silva)