neither the company nor the llc is a party , either as borrower or guarantor , under the senior debt facility , and none of their respective assets , other than the llc interests in the operating subsidiaries themselves , are pledged as collateral under the senior debt facility . we work closely with cargill , one of the world 's leading agribusiness companies , with whom we have an extensive commercial relationship . at each of our plant locations , cargill has a local grain origination presence and owns adjacent grain storage and handling facilities , which we lease from them . cargill provides corn procurement services , markets the ethanol we produce and provides transportation logistics for our two plants under long-term contracts . we have also from time to time relied upon extensions of payment terms by cargill as a source of liquidity and working capital . see – “ liquidity and capital resources ” . 32 liquidity and going concern considerations our financial results and cash flows are subject to wide and unpredictable fluctuations in the crush spread . the price of our main co-product , distillers grain , is likewise subject to wide , unpredictable fluctuations , typically in conjunction with changes in the price of corn . the prices of these commodities are volatile and beyond our control . as a result of the volatility of the prices for these and other items , our results fluctuate substantially and in ways that are largely beyond our control . as shown in the accompanying consolidated financial statements , the company incurred a net loss of $ 46.3 million during the year ended december 31 , 2012 , due to narrow commodity margins . narrow commodity margins present a significant risk to our cash flows and liquidity . we have had , and continue to have , limited liquidity , with $ 9.3 million of cash and cash equivalents as of december 31 , 2012 , of which $ 8.6 million was held at the llc and $ 0.7 million was held at the operating subsidiaries , which is subject to the lenders ' liens under the senior debt facility . due to our limited and declining liquidity , our board of directors determined that , in order to preserve cash at the llc , the operating subsidiaries would not make the regularly-scheduled payments of principal and interest that were due under the outstanding senior debt facility on september 28 , 2012 , in an aggregate amount of $ 3.6 million . as a result , the operating subsidiaries received a notice of default from first national bank of omaha , as administrative agent for the lenders under the senior debt facility . since the initial default , the operating subsidiaries have not made any of the regularly-scheduled principal and interest payments , which through december 31 , 2012 totaled $ 8.2 million . on november 5 , 2012 , the operating subsidiaries and the lenders under the senior debt facility entered into a forbearance agreement whereby the lenders agreed to forbear from exercising their remedies until november 15 , 2012. although the forbearance agreement expired on november 15 , 2012 and has not been extended , the company continues to engage in active and continuing discussions with the lenders and their advisors . in conjunction with our ongoing discussions with the lenders under the senior debt facility , in march 2013 the company engaged a financial adviser to assist it with an assessment of its strategic alternatives . these alternatives could include , but are not limited to , a sale of all or substantially all of the assets of the operating subsidiaries , which comprise substantially all of the assets of the company other than cash on hand . the lenders under the senior debt facility have indicated that they are willing to provide the company with a grace period until july 30 , 2013 to allow us to pursue one or more strategic alternatives . this grace period would be subject to the achievement of certain milestones , and could be extended at the sole discretion of the administrative agent under the senior debt facility . the company expects to enter into a formal agreement to reflect the foregoing as soon as reasonably practicable . in the event of a sale of one or both of our ethanol plants , the proceeds of such sale would first be applied to repay all or a portion of the outstanding indebtedness under the senior debt facility . residual proceeds after satisfying the senior indebtedness , if any , would accrue to the company . any such sale would also most likely require the consent of the lenders under the senior debt facility . the company , on behalf of the operating subsidiaries , has also been engaged in separate discussions with the lenders under the senior debt facility regarding a consensual resolution of the default . it is likely that any such agreement with the lenders will entail the transfer of all or substantially all of the assets of the operating subsidiaries in satisfaction of all of the outstanding indebtedness under the senior debt facility . to that end , the company 's board of directors has approved in principle our proceeding with such a transaction in the event the company is unable to achieve an alternative transaction . we can not assure you , however , that we will be able to reach agreement with our lenders with respect to any such transaction , or achieve any other transaction , which could also include a capital contribution by the company of its cash on hand to the operating subsidiaries , additional loans , a long-term forbearance or restructuring under the senior debt facility , some combination of the foregoing , or another transaction in a form yet to be determined . story_separator_special_tag the agreement also includes a $ 25,000 monthly minimum energy charge that also began in the first quarter of 2008. notes payable notes payable relate to certain financing agreements in place at our wood river facility . the subsidiary of the llc entered into a note payable for $ 419,000 with the city of wood river for special assessments related to street , water , and sanitary improvements at our wood river facility . this note requires ten annual payments of $ 58,000 , including interest at 6.5 % per annum , and matures in 2018. in addition , the subsidiary of the llc for the wood river facility entered into a financing agreement in the fourth quarter of 2012 for the purchase of certain rolling stock equipment to be used at the facility for $ 208,000. this note requires 24 monthly payments of $ 9,000 , including interest at 6.0 % per annum , and matures in 2014. tax increment financing in february 2007 , the subsidiary of the llc that constructed the wood river plant received $ 6.0 million from the proceeds of a tax increment revenue note issued by the city of wood river , nebraska . the proceeds funded improvements to property owned by the subsidiary . the city of wood river will pay the principal and interest of the note from the incremental increase in the property taxes related to the improvements made to the property . the interest rate on the note is 7.85 % . the proceeds have been recorded as a liability which is reduced as the subsidiary of the llc remits property taxes to the city of wood river , which began in 2008 and will continue through 2021. the llc has guaranteed the principal and interest of the tax increment revenue note if , for any reason , the city of wood river fails to make the required payments to the holder of the note or the subsidiary of the llc fails to make the required payments to the city of wood river . 40 rights offering and llc concurrent private placement in february 2011 , we completed a rights offering ( the “ rights offering ” ) entailing a distribution to our common stockholders of rights to purchase depositary shares representing fractional interests in shares of series a non-voting convertible preferred stock ( the “ preferred stock ” ) . concurrent with the rights offering , the llc conducted a private placement of llc interests that was structured to provide the holders of the membership interests in the llc ( other than the company ) with a private placement that was economically equivalent to the rights offering . on february 2 , 2011 , the company 's stockholders approved an increase in the number of authorized shares of common stock of the company , which resulted in the automatic conversion of shares of the preferred stock into shares of the company 's common stock such that subscribers in the rights offering were issued one share of common stock in lieu of each depositary share subscribed for . these transactions were completed and 3,188,681 shares of common stock , at a price of $ 11.20 per share , and 918,463 llc membership interests , at a price of $ 11.20 per unit ( along with an equivalent number of shares of class b common stock ) , were issued on february 4 , 2011. the aggregate gross proceeds of the rights offering and the concurrent private placement were $ 46.0 million . the proceeds of the transaction were used to ( i ) repay in full $ 20.3 million owed under a bridge loan previously provided by certain affiliates of greenlight capital , inc. and certain affiliates of third point llc , ( ii ) repay in full $ 21.5 million owed under our then outstanding subordinated debt , ( iii ) repay $ 2.8 million of debt owed to cargill and ( iv ) pay certain fees and expenses incurred in connection with the rights offering and the llc 's concurrent private placement . on february 15 , 2011 , the company issued 329,890 shares of common stock to cargill in exchange for the extinguishment of the remaining amount of indebtedness owed to cargill . an additional $ 2.0 million that was carried on our balance sheet at december 31 , 2010 due to troubled debt restructuring accounting was also extinguished . this amount , in addition to $ 2.8 million of the debt that was forgiven by cargill , was accounted for as a capital contribution to additional paid-in capital because the company and cargill were considered related parties . off-balance sheet arrangements except for our operating leases , we do not have any off-balance sheet arrangements that have or are reasonably likely to have a material current or future effect on our financial condition , changes in financial condition , revenues or expenses , results of operations , liquidity , capital expenditures or capital resources . summary of critical accounting policies and significant estimates the consolidated financial statements of biofuel energy corp. included in this form 10-k have been prepared in conformity with accounting principles generally accepted in the united states . note 2 to these consolidated financial statements contains a summary of our significant accounting policies , certain of which require the use of estimates and assumptions . accounting estimates are an integral part of the preparation of financial statements and are based on judgments by management using its knowledge and experience about the past and current events and assumptions regarding future events , all of which we consider to be reasonable . these judgments and estimates reflect the effects of matters that are inherently uncertain and that affect the carrying value of our assets and liabilities , the disclosure of contingent liabilities and reported amounts of expenses during the reporting period . the accounting estimates and assumptions discussed in this section are those that we

liquidity and capital resources our cash flows from operating , investing and financing activities during the years ended december 31 , 2012 and 2011 are summarized below ( in thousands ) : replace_table_token_9_th cash provided by operating activities . net cash provided by operating activities was $ 1.5 million for the year ended december 31 , 2012 , compared to $ 23.6 million for the year ended december 31 , 2011. for the year ended december 31 , 2012 , the amount was primarily comprised of a net loss of $ 46.3 million which was offset by working capital sources of $ 18.0 million and non-cash charges of $ 29.8 million , which were primarily depreciation and amortization . working capital sources primarily related to a decrease in accounts receivable of $ 4.3 million and a decrease in inventories of $ 12.8 million . the decrease in both accounts receivable and inventories was primarily a result of shutting down production at our fairmont facility in late september 2012 which resulted in the collection of accounts receivable and the reduction of inventory balances at that plant . for the year ended december 31 , 2011 , the amount was primarily comprised of a net loss of $ 10.4 million which was offset by working capital sources of $ 2.8 million and non-cash charges of $ 31.25 million , which were primarily depreciation and amortization . cash used in investing activities . net cash used in investing activities was $ 0.8 million for the year ended december 31 , 2012 , compared to $ 2.8 million for the year ended december 31 , 2011. the net cash used in investing activities during both periods was for capital expenditures related to various plant improvement projects . cash used in financing activities .


 Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
     ```liquidity and capital resources our cash flows from operating , investing and financing activities during the years ended december 31 , 2012 and 2011 are summarized below ( in thousands ) : replace_table_token_9_th cash provided by operating activities . net cash provided by operating activities was $ 1.5 million for the year ended december 31 , 2012 , compared to $ 23.6 million for the year ended december 31 , 2011. for the year ended december 31 , 2012 , the amount was primarily comprised of a net loss of $ 46.3 million which was offset by working capital sources of $ 18.0 million and non-cash charges of $ 29.8 million , which were primarily depreciation and amortization . working capital sources primarily related to a decrease in accounts receivable of $ 4.3 million and a decrease in inventories of $ 12.8 million . the decrease in both accounts receivable and inventories was primarily a result of shutting down production at our fairmont facility in late september 2012 which resulted in the collection of accounts receivable and the reduction of inventory balances at that plant . for the year ended december 31 , 2011 , the amount was primarily comprised of a net loss of $ 10.4 million which was offset by working capital sources of $ 2.8 million and non-cash charges of $ 31.25 million , which were primarily depreciation and amortization . cash used in investing activities . net cash used in investing activities was $ 0.8 million for the year ended december 31 , 2012 , compared to $ 2.8 million for the year ended december 31 , 2011. the net cash used in investing activities during both periods was for capital expenditures related to various plant improvement projects . cash used in financing activities .
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 Suspicious Activity Report : neither the company nor the llc is a party , either as borrower or guarantor , under the senior debt facility , and none of their respective assets , other than the llc interests in the operating subsidiaries themselves , are pledged as collateral under the senior debt facility . we work closely with cargill , one of the world 's leading agribusiness companies , with whom we have an extensive commercial relationship . at each of our plant locations , cargill has a local grain origination presence and owns adjacent grain storage and handling facilities , which we lease from them . cargill provides corn procurement services , markets the ethanol we produce and provides transportation logistics for our two plants under long-term contracts . we have also from time to time relied upon extensions of payment terms by cargill as a source of liquidity and working capital . see – “ liquidity and capital resources ” . 32 liquidity and going concern considerations our financial results and cash flows are subject to wide and unpredictable fluctuations in the crush spread . the price of our main co-product , distillers grain , is likewise subject to wide , unpredictable fluctuations , typically in conjunction with changes in the price of corn . the prices of these commodities are volatile and beyond our control . as a result of the volatility of the prices for these and other items , our results fluctuate substantially and in ways that are largely beyond our control . as shown in the accompanying consolidated financial statements , the company incurred a net loss of $ 46.3 million during the year ended december 31 , 2012 , due to narrow commodity margins . narrow commodity margins present a significant risk to our cash flows and liquidity . we have had , and continue to have , limited liquidity , with $ 9.3 million of cash and cash equivalents as of december 31 , 2012 , of which $ 8.6 million was held at the llc and $ 0.7 million was held at the operating subsidiaries , which is subject to the lenders ' liens under the senior debt facility . due to our limited and declining liquidity , our board of directors determined that , in order to preserve cash at the llc , the operating subsidiaries would not make the regularly-scheduled payments of principal and interest that were due under the outstanding senior debt facility on september 28 , 2012 , in an aggregate amount of $ 3.6 million . as a result , the operating subsidiaries received a notice of default from first national bank of omaha , as administrative agent for the lenders under the senior debt facility . since the initial default , the operating subsidiaries have not made any of the regularly-scheduled principal and interest payments , which through december 31 , 2012 totaled $ 8.2 million . on november 5 , 2012 , the operating subsidiaries and the lenders under the senior debt facility entered into a forbearance agreement whereby the lenders agreed to forbear from exercising their remedies until november 15 , 2012. although the forbearance agreement expired on november 15 , 2012 and has not been extended , the company continues to engage in active and continuing discussions with the lenders and their advisors . in conjunction with our ongoing discussions with the lenders under the senior debt facility , in march 2013 the company engaged a financial adviser to assist it with an assessment of its strategic alternatives . these alternatives could include , but are not limited to , a sale of all or substantially all of the assets of the operating subsidiaries , which comprise substantially all of the assets of the company other than cash on hand . the lenders under the senior debt facility have indicated that they are willing to provide the company with a grace period until july 30 , 2013 to allow us to pursue one or more strategic alternatives . this grace period would be subject to the achievement of certain milestones , and could be extended at the sole discretion of the administrative agent under the senior debt facility . the company expects to enter into a formal agreement to reflect the foregoing as soon as reasonably practicable . in the event of a sale of one or both of our ethanol plants , the proceeds of such sale would first be applied to repay all or a portion of the outstanding indebtedness under the senior debt facility . residual proceeds after satisfying the senior indebtedness , if any , would accrue to the company . any such sale would also most likely require the consent of the lenders under the senior debt facility . the company , on behalf of the operating subsidiaries , has also been engaged in separate discussions with the lenders under the senior debt facility regarding a consensual resolution of the default . it is likely that any such agreement with the lenders will entail the transfer of all or substantially all of the assets of the operating subsidiaries in satisfaction of all of the outstanding indebtedness under the senior debt facility . to that end , the company 's board of directors has approved in principle our proceeding with such a transaction in the event the company is unable to achieve an alternative transaction . we can not assure you , however , that we will be able to reach agreement with our lenders with respect to any such transaction , or achieve any other transaction , which could also include a capital contribution by the company of its cash on hand to the operating subsidiaries , additional loans , a long-term forbearance or restructuring under the senior debt facility , some combination of the foregoing , or another transaction in a form yet to be determined . story_separator_special_tag the agreement also includes a $ 25,000 monthly minimum energy charge that also began in the first quarter of 2008. notes payable notes payable relate to certain financing agreements in place at our wood river facility . the subsidiary of the llc entered into a note payable for $ 419,000 with the city of wood river for special assessments related to street , water , and sanitary improvements at our wood river facility . this note requires ten annual payments of $ 58,000 , including interest at 6.5 % per annum , and matures in 2018. in addition , the subsidiary of the llc for the wood river facility entered into a financing agreement in the fourth quarter of 2012 for the purchase of certain rolling stock equipment to be used at the facility for $ 208,000. this note requires 24 monthly payments of $ 9,000 , including interest at 6.0 % per annum , and matures in 2014. tax increment financing in february 2007 , the subsidiary of the llc that constructed the wood river plant received $ 6.0 million from the proceeds of a tax increment revenue note issued by the city of wood river , nebraska . the proceeds funded improvements to property owned by the subsidiary . the city of wood river will pay the principal and interest of the note from the incremental increase in the property taxes related to the improvements made to the property . the interest rate on the note is 7.85 % . the proceeds have been recorded as a liability which is reduced as the subsidiary of the llc remits property taxes to the city of wood river , which began in 2008 and will continue through 2021. the llc has guaranteed the principal and interest of the tax increment revenue note if , for any reason , the city of wood river fails to make the required payments to the holder of the note or the subsidiary of the llc fails to make the required payments to the city of wood river . 40 rights offering and llc concurrent private placement in february 2011 , we completed a rights offering ( the “ rights offering ” ) entailing a distribution to our common stockholders of rights to purchase depositary shares representing fractional interests in shares of series a non-voting convertible preferred stock ( the “ preferred stock ” ) . concurrent with the rights offering , the llc conducted a private placement of llc interests that was structured to provide the holders of the membership interests in the llc ( other than the company ) with a private placement that was economically equivalent to the rights offering . on february 2 , 2011 , the company 's stockholders approved an increase in the number of authorized shares of common stock of the company , which resulted in the automatic conversion of shares of the preferred stock into shares of the company 's common stock such that subscribers in the rights offering were issued one share of common stock in lieu of each depositary share subscribed for . these transactions were completed and 3,188,681 shares of common stock , at a price of $ 11.20 per share , and 918,463 llc membership interests , at a price of $ 11.20 per unit ( along with an equivalent number of shares of class b common stock ) , were issued on february 4 , 2011. the aggregate gross proceeds of the rights offering and the concurrent private placement were $ 46.0 million . the proceeds of the transaction were used to ( i ) repay in full $ 20.3 million owed under a bridge loan previously provided by certain affiliates of greenlight capital , inc. and certain affiliates of third point llc , ( ii ) repay in full $ 21.5 million owed under our then outstanding subordinated debt , ( iii ) repay $ 2.8 million of debt owed to cargill and ( iv ) pay certain fees and expenses incurred in connection with the rights offering and the llc 's concurrent private placement . on february 15 , 2011 , the company issued 329,890 shares of common stock to cargill in exchange for the extinguishment of the remaining amount of indebtedness owed to cargill . an additional $ 2.0 million that was carried on our balance sheet at december 31 , 2010 due to troubled debt restructuring accounting was also extinguished . this amount , in addition to $ 2.8 million of the debt that was forgiven by cargill , was accounted for as a capital contribution to additional paid-in capital because the company and cargill were considered related parties . off-balance sheet arrangements except for our operating leases , we do not have any off-balance sheet arrangements that have or are reasonably likely to have a material current or future effect on our financial condition , changes in financial condition , revenues or expenses , results of operations , liquidity , capital expenditures or capital resources . summary of critical accounting policies and significant estimates the consolidated financial statements of biofuel energy corp. included in this form 10-k have been prepared in conformity with accounting principles generally accepted in the united states . note 2 to these consolidated financial statements contains a summary of our significant accounting policies , certain of which require the use of estimates and assumptions . accounting estimates are an integral part of the preparation of financial statements and are based on judgments by management using its knowledge and experience about the past and current events and assumptions regarding future events , all of which we consider to be reasonable . these judgments and estimates reflect the effects of matters that are inherently uncertain and that affect the carrying value of our assets and liabilities , the disclosure of contingent liabilities and reported amounts of expenses during the reporting period . the accounting estimates and assumptions discussed in this section are those that we

