WILMINGTON, Del., Aug. 18, 2014 (GLOBE NEWSWIRE) -- Andrews & Springer LLC, a boutique securities class action law firm focused on representing shareholders nationwide, is investigating potential violations of securities laws and breach of fiduciary duty claims against the Board of Directors of BioFuel Energy Corp. ("BioFuel" or the "Company") relating to the Company's reverse takeover led by JBGL Builder Finance LLC, a real estate joint venture led by Greenlight Capital, Inc., BioFuel's largest shareholder, for $275 million.
Our investigation so far has revealed that the process leading up to the announcement of the reverse takeover appears to have substantial conflicts of interest, thus tainting the acquisition and making the transaction unfair. The reverse takeover, as currently structured, is expected to harm current BioFuel shareholders. As disclosed by the Company, BioFuel is exiting the ethanol business and becoming a real estate venture affiliate of Greenlight Capital. Greenlight Capital, the company's largest shareholder, is funding the reverse takeover with $150 million in debt with an excessive 10% fixed interest rate and a $70 million rights offering. Under the rights offering, each holder will be able to purchase shares at only 80% of the Company's 10-day average closing price in an amount not exceeding $5.00 per share.
Making matters worse, while BioFuel's share price is currently trading around $11, BioFuel shareholders are going to face massive dilution of their shares given Greenlight's $5.00 per share cap on the rights offering. For more analysis on the reverse takeover please click here.
If you own shares of BioFuel Energy and want to receive additional information and protect your investments free of charge, please visit us at http://www.andrewsspringer.com/cases-investigations/BIOF or contact Craig J. Springer, Esq. at cspringer@andrewsspringer.com, or call toll free at 1-800-423-6013. You may also follow us on LinkedIn – www.linkedin.com/company/andrews-&-springer-llc, Twitter – www.twitter.com/AndrewsSpringer or Facebook - www.facebook.com/AndrewsSpringer for future updates.
Andrews & Springer is a boutique securities class action law firm representing shareholders nationwide who are victims of securities fraud, breaches of fiduciary duty or corporate misconduct. Having formerly defended some of the largest financial institutions in the world, our founding members use their valuable knowledge, experience, and superior skill for the sole purpose of achieving positive results for investors. These traits are the hallmarks of our innovative approach to each case our Firm decides to prosecute. For more information please visit our website at www.andrewsspringer.com. This notice may constitute Attorney Advertising.