Central Illinois Energy LLC was authorized Feb. 29 by the bankruptcy court to hold a March 20 auction testing if anyone will beat the existing purchase offer from its uncompleted ethanol plant in Canton, Ill.

The secured lenders will exchange $80 million in secured debt for the plant. Other bids are due March 17. The sale approval hearing will be April 9.

Credit Suisse Group, the agent for the lenders holding $95 million in secured claims, declined to provide financing for the plant's completion until the facility is sold.

The plant is designed for having the capacity to produce 37 million gallons of ethanol a year. Court filings list the assets as being worth $40 million while debt totals $141 million.

Central Illinois filed under Chapter 11 on Dec. 13 in U.S. Bankruptcy Court in Peoria, Illinois. The case is In re Central Illinois Energy LLC, 07-82817, U.S. Bankruptcy Court, Central District of Illinois (Peoria).