STEAMBOAT ROCK - Pine Lake Corn Processors has shifted back into drive.

The ethanol plant near Steamboat Rock was in "high idle" for several weeks last month, not producing a drop of the corn-based fuel as it sorted through Chapter 11 bankruptcy proceedings. A judge previously allowed Pine Lake to use what equity it had left to start production on Christmas Eve, officials said.

On Wednesday, plant officials said a bankruptcy judge ruled the facility can continue to operate until at least March 6 when another evaluation will take place. Board member Polly Granzow takes that as a good sign that the facility is back on track.

Granzow said Pine Lake officials have created a new operating plan. Specifics weren't available.

"We are having to prove it can (be profitable)," said Granzow, who farms near Eldora and is an outgoing state representative. "There's better planning if we know we can stay open. The judge must have felt it (plan) was working like it's supposed to or he wouldn't let us continue."

Pine Lake suspended production on Dec. 1 after running out of money. The company bought too much high-priced corn during the summer and didn't sell enough ethanol at a price to cover expenses.

The company filed bankruptcy on Dec. 4, seeking protection from creditors. At the time of the filing, documents showed Pine Lake owed about $12.7 million to 20 of its largest creditors. The most significant is a nearly $9.4 million bill for corn to Prairie Land Cooperative based in Hubbard, records show.

Prairie Land is supplying corn again on a pre-pay basis, said Larry Meints, company president.

During the shutdown, a skeleton crew kept the plant at powered up to begin production at any time, Meints said. It's "very expensive" to totally shutter a plant, he said.

"It's very satisfying to see the plant operating again and employees with jobs," Meints said.

The facility employs more than 30 people and produces about 30 million gallons of ethanol a year.

With cash corn currently in the $3.80 per bushel range - an ethanol plant's primary input - and ethanol selling at about $1.60 per gallon, Meints said the plant is profitable at this time. That wasn't the case when Pine Lake was chewing through $6 per bushel corn and higher and ethanol was $1.50 per gallon, officials said.

As far as a plan to repay creditors, Granzow said getting the plant consistently operating at a profit again is the main concern.

"One step at a time," she said.

After opening in 2005, Pine Lake netted $24.1 million in profits during its first two years of production. It was featured on the CBS news magazine "60 Minutes" as an example of rural business development.

Meints previously said 400 stock holders made enough money through dividends and tax credits to cover any potential losses. Granzow and her husband are committed to selling 18,500 bushels of corn to Pine Lake a year.

"I'm extremely positive (about ethanol). I always have been," she said.

Contact Matthew Wilde at (319) 291-1579 or matt.wilde@wcfcourier.com.