Ethanol firm Renew to file for bankruptcy-report

NEW YORK, Jan 30 (Reuters) - Private Wisconsin ethanol distiller Renew Energy Llc has taken steps toward filing for bankruptcy protection, according to a report on Friday.

Renew's board of directors voted to file for Chapter 11 bankruptcy protection this week amid tough operating margins for making the alternative motor fuel, according to the agriculture industry website www.wisconsinagconnection.com.

The company, which owns a 130 million gallons per year plant in Jefferson, Wisconsin, declined to comment on the report and said it would issue a statement on Friday.

VeraSun Energy Corp VSUNQ.OB filed for bankruptcy protection in October after making expensive hedging bets on corn. At the time, it was the second largest distiller in the country. Since then several other small ethanol companies have filed for bankruptcy protection on dismal margins for making the alternative motor fuel.

U.S. ethanol capacity has fallen about 5 percent since late October to about 10.6 billion gallons per year. Please click on [ID:nN27458451]. (Reporting by Timothy Gardner, editing by Marguerita Choy)