Loeb Buys 19.3% of BioFuel Energy Corp.; To Partner With Einhorn

In November last year, lenders to BioFuel Energy Corp. (NASDAQ:BIOF) exercised their rights under the existing senior secured credit facility acquired the companies ethanol plants and completed their sale to an entity called Green Plains Inc (NASDAQ:GPRE). In return they extinguished the entire outstanding under the said credit facility which totalled $ 177 million including principal and interest owed to them by BioFuel Energy. That marked the end of the company’s ethanol business. The company was left with two assets of any significance: about $10-$11 million of unrestricted cash on hand and federal net operating losses carry forwards of about $250…