By MIKE CORN

mcorn@dailynews.net

Russell City Manager Ralph Wise is hopeful that one of the city's top employers will emerge from bankruptcy stronger and better prepared to face today's economy.

But he's also cognizant the city of Russell and Russell County are among the 20 largest creditors of White Energy, owner and operator of the community's ethanol and wheat gluten facilities.

Privately-held, Dallas-based White Energy declared Chapter 11 bankruptcy late last week, citing low profit margins.

In addition to the Russell plants, White also operates relatively new ethanol facilities in Hereford and Plainview, Texas.

At Russell, the milo-to-ethanol plant produces nearly 50 million gallons a year. Another 36 million pounds of wheat gluten is produced annually. The Russell plant was brought online in 2001 and was acquired by White in 2006.

White's bankruptcy filing listed debts at between $100 million and $500 million, according to published reports.

A person answering the phone at White headquarters in Dallas suggested performing a Google search for the Delaware bankruptcy court for information.

Russell was notified of the bankruptcy because of White's outstanding utility bill.

Wise, however, said he is "encouraged by the fact that it is reorganization."

White Energy owes a single month's utility bill -- water and electricity -- to the city.

That, he said, amounts to about $346,000.

"That's one month's bill," Wise said. "Most of that is electricity."

Russell produces its own electricity, selling power to White as well as Russell residents. About $50,000 of that bill would be for water.

White's ethanol plant also gets water from Post Rock Rural Water District, which taps into Kanopolis Lake, and pumps some of its owns water.

Although he expects the city ultimately will be paid, Wise said it's a blow to the community's finances.

"We'll just have to be conservative on our budget," he said.

Russell's budget amounts to about $23.6 million, more than half of that in electricity and water.

In addition, White owes the second half of its taxes on the property where the plants are located. That amounts to about $290,000 -- nearly a third of it would have been destined for city coffers.

"We assume that will be paid sometime soon," Wise said of the taxes.

Russell will continue to supply electricity and water to the plants, which employ about 70 people.

His hope is White can emerge from bankruptcy court stronger than it is today.

"But we're not oblivious to the fact that it could be more serious than it looks," he said.

Overall, Wise said, White has been a good member of the community, paying its bills on time and ensuring workers are informed of issues.

"We have nothing but praise for them," he said.