Biodiesel firm Nova Biosource files for bankruptcy

NEW YORK (Reuters) - Nova Biosource Fuels Inc NBF.A filed for Chapter 11 bankruptcy to reorganize its biodiesel refining business, the latest in a list of alternative fuel companies to succumb to tough market conditions.

The company has up to $50 million of both liabilities and assets, it said in a filing with the U.S. Bankruptcy Court in Delaware. Nova Biosource, which produces diesel from animal-derived fats, greases and vegetable-based oils, lists five refineries on its website.

The company joins a list of alternative fuel producers such as Verasun Energy Corp VSUNQ.OB that have filed for bankruptcy after a crash in energy prices that followed a period of rapid expansion.

Nova Biosource, which reported a first-quarter net loss of $11 million, included 10 affiliates in the bankruptcy filing.

The case is In re Nova Holding Clinton County LLC, US Bankruptcy Court, District of Delaware, No. 09-11081.

Reporting by Tom Hals; Editing by Lisa Von Ahn