##### Table of Contents



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 WASHINGTON, D.C. 20549
 FORM 10-QSB
 QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
 FOR THE QUARTERLY PERIOD ENDED: March 31, 2008
 Commission File Number: 000-52421
 ADVANCED BIOENERGY, LLC
  Delaware
State or Other Jurisdiction of 
Incorporation or Organization)
    
    10201 Wayzata Boulevard, Suite 250
Minneapolis, Minnesota 55305
(763) 226-2701
(Address, including zip code, and
telephone number, including area code,
of Principal Executive Offices)
    
    20-2281511
(I.R.S. Employer
 Identification No.)
 þ o
 o þ
  Large accelerated filer o
    
    Accelerated filer o
    
    Non-accelerated filer o
    
    Smaller reporting
company þ(Do not check if a smaller reporting company)
  o þ




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##### 



ADVANCED BIOENERGY, LLC
FORM 10-QSB
Index
 PART I. FINANCIAL INFORMATIONItem 1.
    
    Financial StatementsCondensed Consolidated Balance Sheets
    
    3Condensed Consolidated Statements of Operations
    
    4Condensed Consolidated Statements of Changes in Members Equity
    
    5Condensed Consolidated Statements of Cash Flows
    
    6Notes to Condensed Consolidated Financial Statements
    
    7Item 2.
    
    Managements Discussion and Analysis or Plan of Operation
    
    12Item 3A(T).
    
    Controls and Procedures
    
    20PART II. OTHER INFORMATION
    
    20Item 1.
    
    Legal Proceedings
    
    20Item 2.
    
    Unregistered Sales of Equity Securities and Use of Proceeds
    
    20Item 3.
    
    Defaults Upon Senior Securities
    
    20Item 4.
    
    Submission of Matters to a Vote of Security Holders
    
    20Item 5.
    
    Other Information
    
    20Item 6.
    
    Exhibits
    
    20SIGNATURESAmendment to Credit FacilityCertification of Principal Executive OfficerCertification of Principal Financial and Accounting OfficerSection 1350 Certifications
  2




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PART I. FINANCIAL INFORMATION
 
 Item 1. Financial Statements
 
 ADVANCED BIOENERGY, LLC & SUBSIDIARIES
Condensed Consolidated Balance Sheets
(Dollars in thousands)
 March 31,
    
    
    September 30,2008
    
    
    2007(unaudited)AssetsCurrent assetsCash and cash equivalents
    
    $
    12,901
    
    
    $
    7,111Accounts receivable:Trade accounts receivable
    
    
    19,140
    
    
    
    3,067Due from broker
    
    
    1,413
    
    
    
    1,036Inventories
    
    
    13,384
    
    
    
    7,798Prepaid expenses
    
    
    2,475
    
    
    
    1,202Current portion of restricted cash
    
    
    13,262
    
    
    
    1,778Total current assets
    
    
    62,575
    
    
    
    21,992Property and equipment, net
    
    
    263,513
    
    
    
    242,937Other assetsRestricted cash
    
    
    5,456
    
    
    
    Financing costs, net
    
    
    6,973
    
    
    
    1,559Goodwill
    
    
    29,148
    
    
    
    29,148Other assets
    
    
    1,053
    
    
    
    1,199Total assets
    
    $
    368,718
    
    
    $
    296,835Liabilities and members equityCurrent liabilities:Accounts payable
    
    $
    6,095
    
    
    $
    26,959Accrued expenses
    
    
    11,185
    
    
    
    5,768Derivative financial instruments
    
    
    654
    
    
    
    1,172Current portion of long-term debt
    
    
    58,746
    
    
    
    111,779Total current liabilities
    
    
    76,680
    
    
    
    145,678Long term liabilitiesDeferred income
    
    
    6,732
    
    
    
    6,732Other liabilities
    
    
    3,602
    
    
    
    Long-term debt
    
    
    192,448
    
    
    
    51,471Total liabilities
    
    
    279,462
    
    
    
    203,881Commitments and contingencies (Note4)Members equityMembers capital, no par value,
authorized 20,000,000, 9,977,628 and
9,848,028 units outstanding at March 31,
2008 and September 30, 2007,
respectively
    
    
    123,558
    
    
    
    120,019Retained deficit
    
    
    (30,700
    )
    
    
    (27,065
    )Other comprehensive loss
    
    
    (3,602
    )
    
    
    Total members equity
    
    
    89,256
    
    
    
    92,954Total liabilities and members equity
    
    $
    368,718
    
    
    $
    296,835
  3




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ADVANCED BIOENERGY, LLC & SUBSIDIARIES
Condensed Consolidated Statements of Operations
(Unaudited)
(Dollars in thousands)
 Three Months Ended
    
    
    Six Months EndedMarch 31,
    
    
    March 31,2008
    
    
    2007
    
    
    2008
    
    
    2007Net salesEthanol and related products
    
    $
    101,908
    
    
    $
    11,384
    
    
    $
    154,503
    
    
    $
    21,621Other
    
    
    195
    
    
    
    158
    
    
    
    362
    
    
    
    373Total net sales
    
    
    102,103
    
    
    
    11,542
    
    
    
    154,865
    
    
    
    21,994Cost of goods sold
    
    
    95,890
    
    
    
    20,791
    
    
    
    143,911
    
    
    
    23,565Gross profit (loss)
    
    
    6,213
    
    
    
    (9,249
    )
    
    
    10,954
    
    
    
    (1,571
    )Selling, general and administrative
    
    
    2,205
    
    
    
    1,828
    
    
    
    5,706
    
    
    
    4,344Operating income (loss)
    
    
    4,008
    
    
    
    (11,077
    )
    
    
    5,248
    
    
    
    (5,915
    )Other income
    
    
    461
    
    
    
    196
    
    
    
    547
    
    
    
    196Interest income
    
    
    149
    
    
    
    192
    
    
    
    331
    
    
    
    549Interest expense
    
    
    (5,645
    )
    
    
    (483
    )
    
    
    (9,761
    )
    
    
    (959
    )Net loss before minority interest
    
    
    (1,027
    )
    
    
    (11,172
    )
    
    
    (3,635
    )
    
    
    (6,129
    )Minority interest
    
    
    
    
    
    
    (505
    )
    
    
    
    
    
    
    (880
    )Net loss
    
    $
    (1,027
    )
    
    $
    (11,677
    )
    
    $
    (3,635
    )
    
    $
    (7,009
    )Comprehensive loss
    
    $
    (3,222
    )
    
    $
    (11,677
    )
    
    $
    (7,237
    )
    
    $
    (7,009
    )Basic & diluted weighted average
units outstanding
    
    
    9,897,420
    
    
    
    8,496,814
    
    
    
    9,849,428
    
    
    
    8,186,554Loss per unit  basic & diluted
    
    $
    (0.10
    )
    
    $
    (1.37
    )
    
    $
    (0.37
    )
    
    $
    (0.86
    )
  4




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ADVANCED BIOENERGY, LLC & SUBSIDIARIES
Condensed Consolidated Statements of Changes in Members Equity
For the Six Months Ended March 31, 2008
(Unaudited)
(Dollars in thousands)
 OtherMember
    
    
    Members
    
    
    Retained
    
    
    Comprehensive
    
    
    Total MembersUnits
    
    
    Capital
    
    
    Deficit
    
    
    Loss
    
    
    EquityMEMBERS EQUITY  September 30, 2007
    
    
    9,848,028
    
    
    $
    120,019
    
    
    $
    (27,065
    )
    
    $
    
    
    
    $
    92,954Issuance of membership units to officers
    
    
    132,000
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Issued warrants in connection with debt financing
    
    
    
    
    
    
    2,260
    
    
    
    
    
    
    
    
    
    
    
    2,260Unit compensation expense
    
    
    
    
    
    
    1,312
    
    
    
    
    
    
    
    
    
    
    
    1,312Market rate change in hedged interest rate swaps
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (3,602
    )
    
    
    (3,602
    )Units repurchased
    
    
    (2,400
    )
    
    
    (33
    )
    
    
    
    
    
    
    
    
    
    
    (33
    )Net loss
    
    
    
    
    
    
    
    
    
    $
    (3,635
    )
    
    
    
    
    
    
    (3,635
    )MEMBERS EQUITY  March 31, 2008
    
    
    9,977,628
    
    
    $
    123,558
    
    
    $
    (30,700
    )
    
    $
    (3,602
    )
    
    $
    89,256
  5




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ADVANCED BIOENERGY, LLC & SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(Unaudited)
(Dollars in thousands)
 Six Months EndedMarch 31,2008
    
    
    2007Cash used in operating activitiesNet loss
    
    $
    (3,635
    )
    
    $
    (7,009
    )Adjustments to reconcile net loss to net cash used in operating activities:Depreciation
    
    
    9,197
    
    
    
    2,201Amortization of financing costs
    
    
    416
    
    
    
    Amortization of debt discount
    
    
    1,130
    
    
    
    Unit compensation related to Indiana Renewable Fuels, L.P. contingent units
    
    
    750
    
    
    
    Unit compensation expense
    
    
    562
    
    
    
    265Unrealized (gain) loss on derivative financial instruments
    
    
    (518
    )
    
    
    8,495Minority interest in net income
    
    
    
    
    
    
    880Changes in working capital componentsReceivables
    
    
    (16,450
    )
    
    
    (8,008
    )Inventories
    
    
    (5,586
    )
    
    
    (408
    )Prepaid expenses
    
    
    (1,273
    )
    
    
    (103
    )Accounts payable
    
    
    2,093
    
    
    
    (13,400
    )Accrued expenses
    
    
    5,417
    
    
    
    (648
    )Net cash used in operating activities
    
    
    (7,897
    )
    
    
    (17,735
    )Cash used in investing activitiesPurchase of land options and deposits
    
    
    
    
    
    
    (240
    )Purchase of other assets
    
    
    
    
    
    
    (784
    )Purchase of Heartland Grain Fuels, LP, net of cash acquired
    
    
    
    
    
    
    (6,924
    )Purchase of property and equipment
    
    
    (52,576
    )
    
    
    (49,324
    )Change in other assets
    
    
    146
    
    
    
    (Increase) decrease in restricted cash
    
    
    (16,940
    )
    
    
    31,333Net cash used in investing activities
    
    
    (69,370
    )
    
    
    (25,939
    )Cash flows from financing activitiesProceeds from sale of membership units
    
    
    
    
    
    
    897Payments on debt
    
    
    (47,002
    )
    
    
    Proceeds from long-term debt
    
    
    130,092
    
    
    
    37,961Repurchase of member units
    
    
    (33
    )
    
    
    Net cash provided by financing activities
    
    
    83,057
    
    
    
    38,858Net increase (decrease) in cash and cash equivalents
    
    
    5,790
    
    
    
    (4,816
    )Beginning cash and cash equivalents
    
    
    7,111
    
    
    
    10,814Ending cash and cash equivalents
    
    $
    12,901
    
    
    $
    5,998Supplemental disclosure of non cash investing and financing activitiesDeferred income incurred for deposits and deferred offering costs
    
    $
    
    
    
    $
    1,373Membership units issued for acquisition of asset
    
    
    
    
    
    
    28,061Accounts payable incurred for construction in process
    
    
    400
    
    
    
    12,285Deferred financing costs incurred for acquisition of debt
    
    
    5,984
    
    
    
    Unrealized loss on interest rate swaps
    
    
    3,602
    
    
    
    Financing costs amortized to construction in progress
    
    
    154
    
    
    
    76Warrants issued in connection with debt
    
    
    2,260
    
    
    
    Supplemental disclosure of cash flow information:Cash paid for interest, net of capitalized of interest of $2,394 and $1,000
    
    $
    8,819
    
    
    $
    1,968
  6




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ADVANCED BIOENERGY, LLC & SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements (unaudited)
 1. Organization and Significant Accounting Policies
     Interest Rate Swaps
  Revenue Recognition
  Unit Based Compensation
  Loss per Unit
  Restricted Cash
  7




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Accounting Estimates
  Reclassifications
  2. Inventories and Property and Equipment
  March 31,
    
    
    September 30,2008
    
    
    2007Corn
    
    $
    3,032
    
    
    $
    5,500Chemicals
    
    
    389
    
    
    
    164Work in process
    
    
    2,566
    
    
    
    552Ethanol
    
    
    4,850
    
    
    
    609Distillers grain
    
    
    567
    
    
    
    58Supplies and critical parts
    
    
    1,980
    
    
    
    915Total
    
    $
    13,384
    
    
    $
    7,798
 March 31,
    
    
    September 30,2008
    
    
    2007Land
    
    $
    3,884
    
    
    $
    2,428Buildings
    
    
    20,697
    
    
    
    7,178Process equipment
    
    
    251,100
    
    
    
    51,597Office equipment
    
    
    852
    
    
    
    590Construction in process
    
    
    669
    
    
    
    185,636Property and equipment, gross
    
    
    277,202
    
    
    
    247,429Accumulated depreciation
    
    
    (13,689
    )
    
    
    (4,492
    )Property and equipment, net
    
    $
    263,513
    
    
    $
    242,937
  3. Long Term Debt
  March 31, 2008
    
    
    March 31, 2008
    
    
    September 30, 2007Interest Rate
    
    
    Principal Amount
    
    
    Principal AmountHGF senior credit facility
    
    
    6.10  8.27
    %
    
    $
    90,700
    
    
    $
    42,000HGF working capital
    
    
    6.04  6.10
    %
    
    
    7,000
    
    
    
    HGF subordinated solid waste facilities revenue bonds
    
    
    8.25
    %
    
    
    19,000
    
    
    
    ABE Heartland note payable
    
    
    15
    %
    
    
    
    
    
    
    5,000ABE Fairmont senior credit facility
    
    
    5.75
    %
    
    
    90,000
    
    
    
    83,124ABE Fairmont seasonal line
    
    
    5.25
    %
    
    
    
    
    
    
    ABE Fairmont subordinate exempt facilities bonds
    
    
    6.75
    %
    
    
    7,000
    
    
    
    7,000Advanced BioEnergy convertible note
    
    
    15.865
    %
    
    
    25,929
    
    
    
    25,929Advanced BioEnergy promissory note
    
    
    12
    %
    
    
    2,500
    
    
    
    Advanced BioEnergy secured term loan
    
    
    13
    %
    
    
    8,870
    
    
    
    Other
    
    
    7.5
    %
    
    
    195
    
    
    
    197Total outstanding
    
    
    
    
    
    
    251,194
    
    
    
    163,250Less: amounts due within one year
    
    
    
    
    
    
    (58,746
    )
    
    
    (111,779
    )Long-term debt
    
    
    
    
    
    $
    192,448
    
    
    $
    51,471
 8




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2009
    
    $
    58,7462010
    
    
    24,9472011
    
    
    15,2632012
    
    
    15,2632013
    
    
    15,430Thereafter
    
    
    121,545Total debt
    
    $
    251,194
 Senior Credit Agreement for the South Dakota Plants
       Subordinate Solid Waste Facilities Revenue Bonds
    Senior Credit Facility for the Fairmont Plant
  9




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Subordinated Convertible Debt Financing
   Promissory Note
  Secured Term Loan Note
    4. Commitments and Contingencies
 Construction Contracts
  5. Major Customers
   10




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##### Table of Contents



March 31,
    
    March 31,2008
    
    2007Aventine  HGF EthanolSix month revenues
    
    $
    50,709
    
    
    $
    28,835Receivable balance
    
    
    6,584
    
    
    
    3,352RPMG  Fairmont EthanolSix month revenues
    
    
    74,680
    
    
    
    Receivable balance
    
    
    8,559
    
    
    
    Dakotaland  HGF Distiller GrainsSix month revenues
    
    
    6,484
    
    
    
    3,854Receivable balance
    
    
    496
    
    
    
    231CHS  Fairmont Distiller GrainsSix month revenues
    
    
    16,272
    
    
    
    Receivable balance
    
    
    1,937
    
    
    
    
 6. Risk Management
    Accounting for Derivative
Instruments and Hedging Activities
  7. Comprehensive Loss
  11




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Three Months Ended
    
    
    Six Months EndedMarch 31,
    
    
    March 31,
    
    
    March 31,
    
    
    March 31,2008
    
    
    2007
    
    
    2008
    
    
    2007Net income loss as reported
    
    $
    (1,027
    )
    
    $
    (11,677
    )
    
    $
    (3,635
    )
    
    $
    (7,009
    )Unrealized losses on interest rate swaps
    
    
    (2,195
    )
    
    
    
    
    
    
    (3,602
    )
    
    
    Comprehensive loss
    
    $
    (3,222
    )
    
    $
    (11,677
    )
    
    $
    (7,237
    )
    
    $
    (7,009
    )
 
 ITEM 2. Managements Discussion and Analysis or Plan of Operation
 Information Regarding Forward-Looking Statements
  COMPANY OVERVIEW
    EstimatedEstimated
    
    AnnualAnnual
    
    Distillers
    
    EstimatedEthanol
    
    Grains
    
    Annual Corn
    
    Production
    
    PrimaryLocation
    
    Status
    
    Production
    
    Production (1)
    
    Processed
    
    Process
    
    Energy Source
    
    Builder(million gallons
    
    (tons)
    
    (millionper year)
    
    
    
    bushels)Fairmont, NE
    
    In operation
    
    
    110
    
    
    
    354,000
    
    
    
    39.3
    
    
    Dry-Mill
    
    Natural Gas
    
    FagenAberdeen, SD I
    
    In operation
    
    
    9
    
    
    
    29,000
    
    
    
    3.2
    
    
    Dry-Mill
    
    Natural Gas
    
    BroinAberdeen, SD II
    
    In operation (2)
    
    
    46
    
    
    
    148,000
    
    
    
    16.4
    
    
    Dry-Mill
    
    Natural Gas
    
    ICMHuron, SD
    
    In operation
    
    
    32
    
    
    
    103,000
    
    
    
    11.4
    
    
    Dry-Mill
    
    Natural Gas
    
    ICM
 
 (1)
    
    All plants produce or will produce and sell wet and dried distiller grains. The stated
quantities are on a fully dried basis operating at nameplate capacity.(2)
    
    The Aberdeen plant expansion commenced operations in January 2008. 12




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PLAN OF OPERATION THROUGH MARCH 2009
   RESULTS OF OPERATION
 Three Months Ended March 31, 2008 compared to the Three Months Ended March 31, 2007
  Three Months Ended
    
    Three Months EndedMarch 31, 2008
    
    March 31, 2007Average
    
    
    
    
    
    AverageSold/Ground
    
    Net Price/Cost
    
    Sold/Ground
    
    Net Price/CostEthanol (gallons)
    
    
    40,956,442
    
    
    $
    2.03
    
    
    
    10,157,537
    
    
    $
    1.84Dried distiller grains (tons)
    
    
    95,167
    
    
    
    126.26
    
    
    
    6,539
    
    
    
    88.06Wet distiller grains (tons)
    
    
    87,906
    
    
    
    36.23
    
    
    
    65,795
    
    
    
    31.20Corn (bushels)
    
    
    15,169,311
    
    
    $
    4.62
    
    
    
    3,620,519
    
    
    $
    3.58
 Net Sales
  Cost of Goods Sold
    Gross Profit
  Selling, General, and Administrative Expenses
  13




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Six Months Ended March 31, 2008 compared to the Six Months Ended March 31, 2007
  Six Months Ended
    
    Six Months EndedMarch 31, 2008
    
    March 31, 2007Average
    
    
    
    
    
    AverageSold/Ground
    
    Net Price/Cost
    
    Sold/Ground
    
    Net Price/CostEthanol (gallons)
    
    
    65,232,148
    
    
    $
    1.94
    
    
    
    15,853,396
    
    
    $
    1.88Dried distiller grains (tons)
    
    
    144,058
    
    
    
    119.25
    
    
    
    10,686
    
    
    
    82.06Wet distiller grains (tons)
    
    
    155,966
    
    
    
    33.04
    
    
    
    107,921
    
    
    
    25.75Corn (bushels)
    
    
    24,890,567
    
    
    $
    4.13
    
    
    
    7,007,069
    
    
    $
    3.39
 Net Sales
  Cost of Goods Sold
    Gross Profit
  Selling, General, and Administrative Expenses
  Trends and Uncertainties Impacting the Ethanol Industry and our Future Operations
 Overview
  14




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##### Table of Contents



Legislation
  The Renewable Fuels Standard
   The Clean Air Act and Oxygenated Gasoline Program
  The Volumetric Ethanol Excise Tax Credit
   15




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##### Table of Contents



Clean-Fuel Vehicle Refueling Equipment Tax Credit
  Imported Ethanol Tariffs and Quotas
    Technology Developments
     COMPETITION
 Primary Competition
  16




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Competition from Other Alternative Fuels
  Competition for Co-Products
  LIQUIDITY AND CAPITAL RESOURCES
 Cash Flows
 Cash Flows Used in Operating Activities.
 Cash Used in Investing Activities.
 Cash Provided by Financing Activities.
        17




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##### Table of Contents



Credit Arrangements
  March 31, 2008
    
    
    March 31, 2008
    
    
    September 30, 2007Interest Rate
    
    
    Principal Amount
    
    
    Principal AmountHGF senior credit facility
    
    
    6.10  8.27
    %
    
    $
    90,700
    
    
    $
    42,000HGF working capital
    
    
    6.04  6.10
    %
    
    
    7,000
    
    
    
    HGF subordinate solid waste facilities revenue bonds
    
    
    8.25
    %
    
    
    19,000
    
    
    
    ABE Heartland note payable
    
    
    15
    %
    
    
    
    
    
    
    5,000ABE Fairmont senior credit facility
    
    
    5.75
    %
    
    
    90,000
    
    
    
    83,124ABE Fairmont seasonal line
    
    
    5.25
    %
    
    
    
    
    
    
    ABE Fairmont subordinate exempt facilities bonds
    
    
    6.75
    %
    
    
    7,000
    
    
    
    7,000Advanced BioEnergy convertible note
    
    
    15.865
    %
    
    
    25,929
    
    
    
    25,929Advanced BioEnergy promissory note
    
    
    12
    %
    
    
    2,500
    
    
    
    Advanced BioEnergy secured term loan
    
    
    13
    %
    
    
    8,870
    
    
    
    Other
    
    
    7.5
    %
    
    
    195
    
    
    
    197Total outstanding
    
    
    
    
    
    
    251,194
    
    
    
    163,250Less: amounts due within one year
    
    
    
    
    
    
    (58,746
    )
    
    
    (111,779
    )Long-term debt
    
    
    
    
    
    $
    192,448
    
    
    $
    51,471
  2009
    
    $
    58,7462010
    
    
    24,9472011
    
    
    15,2632012
    
    
    15,2632013
    
    
    15,430Thereafter
    
    
    121,545Total debt
    
    $
    251,194
 Summary of Critical Accounting Policies and Estimates
  Revenue Recognition
  Quantitative and Qualitative Disclosures about Market Risk for Our Current Operations
   18




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##### Table of Contents



EstimatedAt Risk
    
    
    
    
    
    Hypothetical
    
    
    
    
    
    Change in AnnualVolume(1)
    
    
    
    
    
    Change in
    
    Spot
    
    Operating Income(in millions)
    
    Units
    
    Price
    
    Price(2)
    
    (in millions)Corn
    
    
    33.3
    
    
    bushels
    
    
    10.0
    %
    
    $
    5.69
    
    
    $
    18.9Natural gas
    
    
    6.1
    
    
    btus
    
    
    10.0
    %
    
    $
    9.86
    
    
    
    6.0Ethanol
    
    
    179.2
    
    
    gallons
    
    
    10.0
    %
    
    $
    2.46
    
    
    
    44.1Distiller grains
    
    
    0.43
    
    
    tons
    
    
    10.0
    %
    
    $
    173
    
    
    
    7.4
 
 (1)
    
    The volume of corn is based on the assumption that we will enter into forward contracts for
43.5% of our estimated current 70.3 million bushel annual requirement. The volume of natural
gas is based on the assumption that we will not enter into any forward contracts for our
estimated 6,107,000 MMBtu annual requirement. The volume of ethanol at risk is based on the
assumption that we will enter into contracts for 9.0% of our expected annual gallons capacity
of 197 million gallons.. The volume of distiller grains at risk is based on the assumption
that we will enter into contracts for 32.1 % of our expected annual distiller grain production
of 634,000 tons.(2)
    
    Current spot prices include the CBOT price per gallon of ethanol and the price per bushel of
corn and the New York Mercantile Exchange price per mmbtu of natural gas as of March 31, 2008. Interest Rate
  Impact of Inflation
  Off-Balance Sheet Arrangements
  Government Programs, Tax Credits And Tax Increment Financing
   19




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##### Table of Contents



ITEM 3A(T). Controls and Procedures
  
 PART II. OTHER INFORMATION
 
 ITEM 1. Legal Proceedings
  Dana, LLC, Carl E. Smith, Martha A. Smith, Timmy Allen
Bailey, Peggy Lea Jones, John F. Richard and Amanda L. Richard v. The Town Board of Argos
[Indiana]; Town of Argos; and the Town of Argos Plan Commission
 
 ITEM 2. Unregistered Sales of Equity Securities And Use Of Proceeds
  
 ITEM 3. Defaults Upon Senior Securities
  
 ITEM 4. Submission of Matters to a Vote of Security Holders
  
 ITEM 5. Other Information
  
 ITEM 6. Exhibits
  20




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##### Table of Contents



SIGNATURES
  ADVANCED BIOENERGY, LLCDate: May 9, 2008
    By:
    /s/ Revis L. Stephenson IIIRevis L. Stephenson IIIChairman and Chief Executive Officer
(Principal Executive Officer)Date: May 9, 2008
    By:
    /s/ Richard PetersonRichard PetersonVice President of Accounting and
Finance and Chief Financial Officer
(Principal Financial and Accounting Officer)




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##### Table of Contents



EXHIBIT INDEX
 ExhibitNo.
    
    Description
    
    Method of Filing3.1
    
    Certificate of Formation
    
    Incorporated by
reference to Exhibit
2.1 to the
Registrants Current
Report on Form 8-K,
filed on November 8,
2006 (File No.
000-52421)3.2
    
    Third Amended and Restated Operating
Agreement of the Registrant
    
    Incorporated herein
by reference to
Exhibit 2.2 to the
Registrants Current
Report on Form 8-K,
filed on November 8,
2006 (File No. 000-52421)10
    
    Master Amendment and Waiver Agreement between Heartland Grain Fuels, L.P., WestLB AG, New
York Branch, WestLB AG, New York Branch, Amarillo National Bank and the other lenders named therein
dated as of March 28, 2008
    
    Filed Electronically31.1
    
    Rule 13a-14(a)/15d-14(a) Certification
by Principal Executive Officer
    
    Filed Electronically31.2
    
    Rule 13a-14(a)/15d-14(a) Certification
by Principal Financial and Accounting
Officer
    
    Filed Electronically32
    
    Section 1350 Certifications
    
    Filed Electronically