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Earlier today we mentioned the Associated Press story about Earth Biofuels' creditors seeking Chapter 7 liquidation of the Knox Street-based company. Well, Forbes has just followed it with a piece that pretty much lays it all out there: "The Party's Over," reads the headline, which is old news to folks who've been following the alternative energy company since its inception.
After the jump. a few highlights from the piece, which is full of nothing but lowlights for the Dallas company that was going to revolutionize the petro biz. Turns out, there's no green left in the green-fuel tank. Was there ever?
Perhaps Earth Biofuels Chairman Dennis McLaughlin should have spent more time working on his business plan instead of schmoozing celebrities...
There's plenty of embarrassment to go around here. In addition to Earth's red-faced celebrity directors, there are supposedly savvy fund managers, including Sandell Asset Management and Cornell Capital, who poured $50 million into Earth a year ago...
"Frankly, most people were just checking boxes and not doing due diligence on any of these investments," says analyst Peter Fusaro, president of the Energy Hedge Fund Center. "It was like lemmings."
No doubt, Julia Roberts now regrets pimping Earth Biofuels on Oprah Winfrey's show last November. And, oh, sweet irony: On the company's Web site there's a press release from June 14 that reads: "Earth Biofuels Outlines 2007 Growth Plan." Or not. --Robert Wilonsky