The Company: Aventine Renewable Energy
Holdings, a leading distributor and producer of fuel-grade ethanol in
the U.S. The Filing: A Form 8-K on June 13, 2008. The Finding:
Aventine raised $97.1 million from the sale of student
loan-based auction rate securities to various parties. The
cash proceeds will be used to fund plant construction, which is
integral to the ethanol producer’s growth strategy. The sale
mitigates the company’s immediate liquidity issues in the face of
ongoing construction expenses, but Aventine still lost $31.6 million
by playing in the auction-rate market and may have to tap a $200
million credit line. The Gist: Aventine produces total ethanol volume
of 191.9 millions of gallons per year — 92.7 percent of total…

Hi guys,

This is an excerpt from one of the
websites I read. Please tell me what does the highlighted sentence
mean.

Thanks in Advance