Earth Biofuels Says It Doesn't Need Chapter 7

Law360, New York (July 16, 2007, 12:00 AM EDT) -- Despite reporting over $60 million in losses in 2006, alternative energy company Earth Biofuels Inc. on Friday publicly reprimanded its creditors' attempts to force it into a Chapter 7 bankruptcy and insisted that it would keep operating.

A group of investors filed an involuntary Chapter 7 petition against the company last Wednesday in the U.S. Bankruptcy Court for the District of Delaware, accusing Earth BioFuels of being generally unable to pay its debts as they became due.

The petitioners are investment companies and senior convertible noteholders...
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