##### Table of Contents



UNITED STATES SECURITIES AND EXCHANGE COMMISSION
 Washington, DC 20549
 Form 10-Q
 QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
 FOR THE QUARTERLY PERIOD ENDED: DECEMBER 31, 2008
 Commission file number: 000-52421
 ADVANCED BIOENERGY, LLC
 (Exact name of Registrant as Specified in its Charter)
 Delaware
    
    20-2281511(State or Other Jurisdiction of
    
    (I.R.S. EmployerIncorporation or Organization)
    
    Identification No.)
 10201 Wayzata Boulevard, Suite 250
Minneapolis, Minnesota 55305
(763) 226-2701  (Address, including zip code, and telephone number,
including area code, of Registrants Principal Executive Offices)
 þ o
  Large accelerated filer o
    
    Accelerated filer o
    
    Non-accelerated filer þ
    
    Smaller reporting company o(Do not check if a smaller reporting company)
 o þ




---



##### 



ADVANCED BIOENERGY, LLC
FORM 10-Q
Index
 PagePart I. Financial Information
    
    
    1Item 1. Financial Statements
    
    
    1Condensed Consolidated Balance Sheets
    
    
    1Condensed Consolidated Statements of Operations
    
    
    2Condensed Consolidated Statement of Members Equity
    
    
    3Condensed Consolidated Statements of Cash Flows
    
    
    4Notes to Condensed Consolidated Financial Statements
    
    
    5Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations
    
    
    12Item 3. Quantitative and Qualitative Disclosures About Market Risk
    
    
    22Item 4T. Controls and Procedures
    
    
    23Part II. Other Information
    
    
    23Item 1. Legal Proceedings
    
    
    23Item 1A. Risk Factors
    
    
    24Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
    
    
    24Item 3. Defaults Upon Senior Securities
    
    
    24Item 4. Submission of Matters to a Vote of Security Holders
    
    
    24Item 5. Other Information
    
    
    24Item 6. Exhibits
    
    
    24Signatures
    
    
    24Exhibit IndexEX-31.1EX-31.2EX-32




---



##### Table of Contents



PART I. FINANCIAL INFORMATION
 
 Item 1. Financial Statements
 ADVANCED BIOENERGY, LLC & SUBSIDIARIES
 
 Condensed Consolidated Balance Sheets
 (Dollars in Thousands)
 December 31,
    
    
    September 30,2008
    
    
    2008(Unaudited)ASSETSCurrent assets:Cash and cash equivalents
    
    $
    12,191
    
    
    $
    14,762Accounts receivable:Trade accounts receivable
    
    
    8,513
    
    
    
    10,929Due from broker
    
    
    458
    
    
    
    1,283Other
    
    
    123
    
    
    
    183Inventories
    
    
    17,901
    
    
    
    13,587Prepaid expenses
    
    
    2,075
    
    
    
    1,937Current portion of restricted cash
    
    
    863
    
    
    
    4,963Total current assets
    
    
    42,124
    
    
    
    47,644Property and equipment, net
    
    
    245,276
    
    
    
    251,611Other assets:Restricted cash
    
    
    5,639
    
    
    
    3,090Deferred financing costs, net
    
    
    6,043
    
    
    
    6,306Other assets
    
    
    1,281
    
    
    
    1,055Total Assets
    
    $
    300,363
    
    
    $
    309,706LIABILITIES AND MEMBERS EQUITYCurrent liabilities:Accounts payable
    
    $
    8,518
    
    
    $
    8,966Accrued expenses
    
    
    7,825
    
    
    
    6,383Derivative financial instruments
    
    
    
    
    
    
    1,242Other liabilities
    
    
    4,213
    
    
    
    Current portion of long-term debt
    
    
    134,484
    
    
    
    134,534Total current liabilities
    
    
    155,040
    
    
    
    151,125Deferred income
    
    
    6,732
    
    
    
    6,732Long-term debt
    
    
    80,036
    
    
    
    82,638Other liabilities
    
    
    
    
    
    
    1,786Members equity:Members capital
    
    
    153,568
    
    
    
    153,516Retained deficit
    
    
    (95,013
    )
    
    
    (84,305
    )Accumulated other comprehensive loss
    
    
    
    
    
    
    (1,786
    )Total members equity
    
    
    58,555
    
    
    
    67,425Total liabilities and members equity
    
    $
    300,363
    
    
    $
    309,706




---



##### Table of Contents



ADVANCED BIOENERGY, LLC & SUBSIDIARIES
 
 Condensed Consolidated Statements of Operations and Comprehensive Loss
 (Dollars in thousands, except per unit data)
 (Unaudited)
 Quarter EndedDecember 31,
    
    
    December 31,2008
    
    
    2007Net salesEthanol and related products
    
    $
    98,513
    
    
    $
    52,596Other
    
    
    341
    
    
    
    166Total net sales
    
    
    98,854
    
    
    
    52,762Cost of goods sold
    
    
    98,778
    
    
    
    48,021Gross profit
    
    
    76
    
    
    
    4,741Selling, general and administrative
    
    
    2,492
    
    
    
    3,561Operating income (loss)
    
    
    (2,416
    )
    
    
    1,180Other income
    
    
    90
    
    
    
    85Interest income
    
    
    79
    
    
    
    242Interest expense
    
    
    (8,461
    )
    
    
    (4,115
    )Net loss
    
    $
    (10,708
    )
    
    $
    (2,608
    )Other comprehensive income (loss):Interest rate swap obligation
    
    
    1,786
    
    
    
    (1,407
    )Comprehensive loss
    
    $
    (8,922
    )
    
    $
    (4,015
    )Basic & diluted weighted average units outstanding
    
    
    11,929,944
    
    
    
    9,801,957Loss per unit  basic and diluted
    
    $
    (0.90
    )
    
    $
    (0.27
    )
  2




---



##### Table of Contents



ADVANCED
BIOENERGY, LLC & SUBSIDIARIES
 
 Condensed Consolidated Statements of Changes in Members Equity
For the Quarter Ended December 31, 2008
(Dollars in thousands)
(Unaudited)
 AccumulatedOtherMember
    
    
    Member
    
    
    Retained
    
    
    ComprehensiveUnits
    
    
    Capital
    
    
    Deficit
    
    
    Income
    
    
    TotalMEMBERS EQUITY  September 30, 2008
    
    
    9,919,162
    
    
    $
    153,516
    
    
    $
    (84,305
    )
    
    $
    (1,786
    )
    
    $
    67,425Issuance of previously subscribed units
    
    
    2,750,000
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Unit compensation expense
    
    
    
    
    
    
    58
    
    
    
    
    
    
    
    
    
    
    
    58Put options exercised
    
    
    (2,400
    )
    
    
    (6
    )
    
    
    
    
    
    
    
    
    
    
    (6
    )Interest rate swap obligations
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,786
    
    
    
    1,786Net loss
    
    
    
    
    
    
    
    
    
    
    (10,708
    )
    
    
    
    
    
    
    (10,708
    )MEMBERS EQUITY  December 31, 2008
    
    
    12,666,762
    
    
    $
    153,568
    
    
    $
    (95,013
    )
    
    $
    
    
    
    $
    58,555
  3




---



##### Table of Contents



ADVANCED BIOENERGY, LLC & SUBSIDIARIES
 
 Condensed Consolidated Statements of Cash Flows
 (Dollars in thousands)
 (Unaudited)
 Quarter EndedDecember 31,
    
    
    December 31,2008
    
    
    2007Cash flows from operating activitiesNet loss
    
    $
    (10,708
    )
    
    $
    (2,608
    )Adjustments to reconcile net loss to net cash used in operating activities:Depreciation
    
    
    6,479
    
    
    
    3,420Amortization of deferred financing costs
    
    
    263
    
    
    
    127Amortization of debt discount
    
    
    
    
    
    
    565Impairment of IRF purchase intangible
    
    
    
    
    
    
    750Unit compensation expense
    
    
    58
    
    
    
    491Termination and accrual of interest rate swap settlement charges
    
    
    4,213
    
    
    
    Unrealized loss on derivative financial instruments
    
    
    (1,242
    )
    
    
    (177
    )Changes in working capital components:Receivables
    
    
    3,301
    
    
    
    (10,553
    )Inventories
    
    
    (4,314
    )
    
    
    (1,773
    )Prepaid expenses
    
    
    (138
    )
    
    
    (332
    )Accounts payable
    
    
    (448
    )
    
    
    (10,550
    )Accrued expenses
    
    
    1,442
    
    
    
    9,831Net cash used in operating activities
    
    
    (1,094
    )
    
    
    (10,809
    )Cash flows from investing activitiesPurchase of property and equipment
    
    
    (144
    )
    
    
    (33,748
    )Change in other assets
    
    
    (226
    )
    
    
    90(Increase) decrease in cash held in escrow
    
    
    1,551
    
    
    
    (5,203
    )Net cash provided by and used in investing activities
    
    
    1,181
    
    
    
    (38,861
    )Cash flows from financing activitiesPayments on debt
    
    
    (2,652
    )
    
    
    (47,001
    )Proceeds from long-term debt
    
    
    
    
    
    
    103,621Repurchase of units
    
    
    (6
    )
    
    
    Net cash provided by and used in financing activities
    
    
    (2,658
    )
    
    
    56,620Net increase (decrease) in cash and cash equivalents
    
    
    (2,571
    )
    
    
    6,950Beginning cash and cash equivalents
    
    
    14,762
    
    
    
    7,111Ending cash and cash equivalents
    
    $
    12,191
    
    
    $
    14,061Supplemental disclosure of non cash transactionsDeferred financing cost paid from long term debt proceeds
    
    $
    
    
    
    $
    5,984Accounts payable incurred for construction in process
    
    
    
    
    
    
    9,110Financing costs amortized to construction in progress
    
    
    
    
    
    
    108Warrants issued in connection with debt
    
    
    
    
    
    
    2,260Supplemental disclosure of cash flow information:Cash paid for interest, net of capitalized interest of $0 in 2008 and $1,160 in 2007
    
    $
    3,603
    
    
    $
    3,703
  4




---



##### Table of Contents



ADVANCED BIOENERGY, LLC & SUBSIDIARIES
 
 NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 December 31, 2008 and 2007
 (Dollars in Thousands)
 (Unaudited)
 1. Organization and Significant Accounting Policies
   Cash and Cash Equivalents
  Fair Value of Financial Instruments
  Derivative Instruments/Due From Broker
 Accounting for
Derivative Instruments and Hedging Activities.
 5




---



##### Table of Contents



Interest Rate Swaps
  Inventories
  Property and Equipment
  Buildings
    
    40 YearsProcess equipment
    
    10 YearsOffice equipment
    
    5-7 Years
   Revenue Recognition
  Shipping Costs
  Loss Per Unit
  Accounting Estimates
  6




---



##### Table of Contents



Risks and Uncertainties
  2. Going Concern
        7




---



##### Table of Contents



3. Inventories
  December 31,
    
    
    September 30,2008
    
    
    2008Corn
    
    $
    7,084
    
    
    $
    843Chemicals
    
    
    866
    
    
    
    593Work in process
    
    
    2,097
    
    
    
    3,524Ethanol
    
    
    5,215
    
    
    
    4,503Distillers grain
    
    
    770
    
    
    
    2,216Supplies and parts
    
    
    1,869
    
    
    
    1,908Total
    
    $
    17,901
    
    
    $
    13,587
  4. Property and Equipment (in thousands)
 December 31,
    
    
    September 30,2008
    
    
    2008Land
    
    $
    3,992
    
    
    $
    3,992Buildings
    
    
    21,273
    
    
    
    21,169Process equipment
    
    
    251,822
    
    
    
    251,688Office equipment
    
    
    1,267
    
    
    
    1,267Construction in process
    
    
    22
    
    
    
    116278,376
    
    
    
    278,232Accumulated depreciation
    
    
    (33,100
    )
    
    
    (26,621
    )Property and equipment, net
    
    $
    245,276
    
    
    $
    251,611
 5. Long Term Debt and Subsequent Events
  December 31,
    
    
    December 31,
    
    
    September 30,2008
    
    
    2008
    
    
    2008Interest Rate
    
    
    Principal Amount
    
    
    Principal AmountHGF senior credit facility
    
    
    8.29
    %
    
    $
    87,979
    
    
    $
    87,979HGF working capital
    
    
    8.5
    %
    
    
    7,100
    
    
    
    7,500HGF subordinated solid waste
facilities revenue bonds
    
    
    8.25
    %
    
    
    19,000
    
    
    
    19,000ABE Fairmont senior credit facility
    
    
    4.50 - 7.53
    %
    
    
    83,250
    
    
    
    85,500ABE Fairmont seasonal line
    
    
    
    
    
    
    
    
    
    
    ABE Fairmont subordinate exempt
facilities bonds
    
    
    6.75
    %
    
    
    7,000
    
    
    
    7,000Advanced BioEnergy secured term loan
    
    
    18
    %
    
    
    10,000
    
    
    
    10,000Other
    
    
    7.5
    %
    
    
    191
    
    
    
    193Total outstanding
    
    
    
    
    
    
    214,520
    
    
    
    217,172Less: Amounts due within one year
    
    
    
    
    
    
    (134,484
    )
    
    
    (134,534
    )Long-term debt
    
    
    
    
    
    $
    80,036
    
    
    $
    82,638
 8




---



##### Table of Contents



2009
    
    $
    134,4842010
    
    
    11,2202011
    
    
    11,2212012
    
    
    11,3902013
    
    
    11,215Thereafter
    
    
    34,990Total debt
    
    $
    214,520
 Senior Credit Agreement for the South Dakota Plants
     Subordinate Solid Waste Facilities Revenue Bonds
   9




---



##### Table of Contents



Senior Credit Facility for the Fairmont Plant
     Fillmore County Subordinate Exempt Facilities Revenue Bonds for the Fairmont plant
  Secured Term Loan Note
  i.e
 10




---



##### Table of Contents



Subordinated Convertible Debt Financing
  6. Members Equity
 Convertible Notes
  Restricted Unit Agreements
  Employment Agreements
  Warrants
  7. Major Customers
   11




---



##### Table of Contents



December 31,
    
    December 31,2008
    
    2007Gavilon EthanolThree month revenues
    
    $
    77,609
    
    
    $
    Receivable balance
    
    
    5,935
    
    
    
    Dakotaland  HGF Distiller GrainsThree month revenues
    
    
    4,942
    
    
    
    2,557Receivable balance
    
    
    755
    
    
    
    475
 8. Risk Management
  Commodity
    
    Quantity
    
    Amount
    
    Period CoveredCorn
    
    2,316 bushels
    
    $
    9,811
    
    
    March 2009Ethanol
    
    7,792 gallons
    
    
    10,868
    
    
    January 2009Dried Distiller Grains (Equivalents)
    
    80 tons
    
    
    10,548
    
    
    June 2009
  Quarter EndedDecember 31,
    
    December 31,2008
    
    2007Ethanol related losses
    
    $
    
    
    
    $
    4Corn losses
    
    
    3,138
    
    
    
    20
 Accounting for Derivative
Instruments and Hedging Activities
 
 Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations
 Information Regarding Forward-Looking Statements
  COMPANY OVERVIEW
  12




---



##### Table of Contents



FACILITIES
  EstimatedEstimated
    
    
    Annual
    
    
    EstimatedAnnual
    
    
    Distillers
    
    
    AnnualEthanol
    
    
    Grains
    
    
    CornProduction (1)
    
    
    Production(2)
    
    
    Processed
    
    
    PrimaryLocation
    
    (Million gallons)
    
    
    (Tons)
    
    
    (Million bushels)
    
    
    Energy Source
    
    
    BuilderFairmont, NE
    
    
    110
    
    
    
    354,000
    
    
    
    39.3
    
    
    Natural Gas
    
    FagenAberdeen, SD
    
    
    9
    
    
    
    29,000
    
    
    
    3.2
    
    
    Natural Gas
    
    BroinHuron, SD
    
    
    32
    
    
    
    103,000
    
    
    
    11.4
    
    
    Natural Gas
    
    ICMAberdeen, SD
    
    
    46
    
    
    
    148,000
    
    
    
    16.4
    
    
    Natural Gas
    
    ICMConsolidated
    
    
    197
    
    
    
    634,000
    
    
    
    70.3
 
 (1)
    
    Production capacity is calculated assuming a 5% denaturant blending percent. Beginning in 2009, the maximum allowable blending % is 2.5%.(2)
    
    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.   PLAN OF OPERATION THROUGH DECEMBER 2009
   13




---



##### Table of Contents



Financing and Existing Debt Obligations
 Advanced BioEnergy
    ABE Fairmont
   Heartland Grain Fuels
   14




---



##### Table of Contents



RESULTS OF OPERATION
 Quarter Ended December 30, 2008 Compared to Quarter Ended December 30, 2007
  Three Months Ended
    
    Three Months EndedDecember 31, 2008
    
    December 31, 2007Sold/Consumed
    
    Average
    
    Sold/Consumed
    
    Average(In thousands)
    
    Net Price/Cost
    
    (In thousands)
    
    Net Price/CostEthanol (gallons)
    
    
    44,729
    
    
    $
    1.75
    
    
    
    24,188
    
    
    $
    1.81Dried distiller grains (tons)
    
    
    84
    
    
    
    129.60
    
    
    
    49
    
    
    
    142.78Wet distiller grains (tons)
    
    
    145
    
    
    
    52.41
    
    
    
    66
    
    
    
    26.94Corn (bushels)
    
    
    16,518
    
    
    $
    4.32
    
    
    
    9,376
    
    
    $
    3.70Gas (mmbtus)
    
    
    1,254
    
    
    
    5.51
    
    
    
    758
    
    
    
    7.51
 Net Sales
  Cost of Goods Sold
  Gross Profit
  Selling, General, and Administrative Expenses
  15




---



##### Table of Contents



Interest Expense
  TRENDS AND UNCERTAINTIES IMPACTING THE ETHANOL INDUSTRY AND OUR FUTURE OPERATIONS
 Overview
   Legislation
  The Renewable Fuels Standard
   UnspecifiedYear
    
    Corn
    
    Cellulosic
    
    Biodiesel
    
    Advanced Biofuel
    
    Total RFS2009
    
    
    10.50
    
    
    
    
    
    
    
    .50
    
    
    
    0.10
    
    
    
    11.102010
    
    
    12.00
    
    
    
    .10
    
    
    
    .65
    
    
    
    0.20
    
    
    
    12.952011
    
    
    12.60
    
    
    
    .25
    
    
    
    .80
    
    
    
    0.30
    
    
    
    13.952012
    
    
    13.20
    
    
    
    .50
    
    
    
    1.00
    
    
    
    0.50
    
    
    
    15.202013
    
    
    13.80
    
    
    
    1.00
    
    
    
    
    
    
    
    1.75
    
    
    
    16.552014
    
    
    14.40
    
    
    
    1.75
    
    
    
    
    
    
    
    2.00
    
    
    
    18.152015
    
    
    15.00
    
    
    
    3.00
    
    
    
    
    
    
    
    2.50
    
    
    
    20.502016
    
    
    15.00
    
    
    
    4.25
    
    
    
    
    
    
    
    3.00
    
    
    
    22.252017
    
    
    15.00
    
    
    
    5.50
    
    
    
    
    
    
    
    3.50
    
    
    
    24.002018
    
    
    15.00
    
    
    
    7.00
    
    
    
    
    
    
    
    4.00
    
    
    
    26.002019
    
    
    15.00
    
    
    
    8.50
    
    
    
    
    
    
    
    4.50
    
    
    
    28.002020
    
    
    15.00
    
    
    
    10.50
    
    
    
    
    
    
    
    4.50
    
    
    
    30.002021
    
    
    15.00
    
    
    
    13.50
    
    
    
    
    
    
    
    4.50
    
    
    
    33.002022
    
    
    15.00
    
    
    
    16.00
    
    
    
    
    
    
    
    5.00
    
    
    
    36.00
 16




---



##### Table of Contents



The Clean Air Act and Oxygenated Gasoline Program
  The Volumetric Ethanol Excise Tax Credit
  Clean-Fuel Vehicle Refueling Equipment Tax Credit
  Clean-Fuel Vehicle Refueling Equipment Tax Credit
   COMPETITION
 Our Primary Competition
  17




---



##### Table of Contents



Competition from Alternative Fuels
  Competition for Co-Products
  LIQUIDITY AND CAPITAL RESOURCES
 Cash Flows
 Cash Flows Used in Operating Activities.
 Cash Provided by and Used in Investing Activities.
 Cash Provided by and Used in Financing Activities.
 Financing and Existing Debt Obligations
  Advanced BioEnergy
  18




---



##### Table of Contents



i.e
  ABE Fairmont
   19




---



##### Table of Contents



Heartland Grain Fuels
      CREDIT ARRANGEMENTS
 20




---



##### Table of Contents



December 31,
    
    
    December 31,
    
    
    September 30,2008
    
    
    2008
    
    
    2008Interest Rate
    
    
    Principal Amount
    
    
    Principal AmountHGF senior credit facility
    
    
    8.29
    %
    
    $
    87,979
    
    
    $
    87,979HGF working capital
    
    
    8.5
    %
    
    
    7,100
    
    
    
    7,500HGF subordinated solid waste
facilities revenue bonds
    
    
    8.25
    %
    
    
    19,000
    
    
    
    19,000ABE Fairmont senior credit facility
    
    
    4.50 - 7.53
    %
    
    
    83,250
    
    
    
    85,500ABE Fairmont seasonal line
    
    
    
    
    
    
    
    
    
    
    ABE Fairmont subordinate exempt
facilities bonds
    
    
    6.75
    %
    
    
    7,000
    
    
    
    7,000Advanced BioEnergy secured term loan
    
    
    18
    %
    
    
    10,000
    
    
    
    10,000Other
    
    
    7.5
    %
    
    
    191
    
    
    
    193Total outstanding
    
    
    
    
    
    
    214,520
    
    
    
    217,172Less: Amounts due within one year
    
    
    
    
    
    
    (134,484
    )
    
    
    (134,534
    )Long-term debt
    
    
    
    
    
    $
    80,036
    
    
    $
    82,638
  2009
    
    $
    134,4842010
    
    
    11,2202011
    
    
    11,2212012
    
    
    11,3902013
    
    
    11,215Thereafter
    
    
    34,990Total debt
    
    $
    214,520
 Summary of Critical Accounting Policies and Estimates
  Revenue Recognition
  Inventories
  Long Lived Asset Impairment
  21




---



##### Table of Contents



OFF-BALANCE SHEET ARRANGEMENTS
  GOVERNMENT PROGRAMS, TAX CREDITS AND TAX INCREMENT FINANCING
    
 Item 3. Quantitative and Qualitative Disclosures about Market Risk
     22




---



##### Table of Contents



Estimatedat Risk
    
    
    
    
    
    Hypothetical
    
    
    
    
    
    Change in AnnualVolume(1)
    
    
    
    
    
    Change in
    
    Spot
    
    Operating Income(In millions)
    
    Units
    
    Price
    
    Price(2)
    
    (In millions)Ethanol
    
    
    165.5
    
    
    gallons
    
    
    10.0
    %
    
    $
    1.62
    
    
    $
    26.8Distiller grains
    
    
    .31
    
    
    tons
    
    
    10.0
    %
    
    
    125
    
    
    
    3.9Corn
    
    
    61.2
    
    
    bushels
    
    
    10.0
    %
    
    
    4.07
    
    
    
    24.9Natural gas
    
    
    5.6
    
    
    btus
    
    
    10.0
    %
    
    
    5.62
    
    
    
    3.1
 
 (1)
    
    The volume of ethanol at risk is based on the assumption that we will enter into contracts for 16% 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 51% of our expected annual distiller grain production of 634,000 tons. The volume of corn is based on the
assumption that we will enter into forward contracts for 13% of our estimated current 70.3 million bushel annual requirement. The volume of natural gas at risk is based on the assumption
that we will continue to lock in one months gas usage.(2)
    
    Current spot prices include the CBOT price per gallon of ethanol and the price per bushel of corn, the NYMEX price per mmbtu of natural gas and our listed local advertised dried distiller
grain price per ton as of December 31, 2008. INTEREST RATE/FOREIGN EXCHANGE RISK
   IMPACT OF INFLATION
  
 Item 4T. Controls and Procedures
  
 PART II. OTHER INFORMATION
 
 Item 1. Legal Proceedings
  23




---



##### Table of Contents



Item 1A. Risk Factors
  
 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
  
 SIGNATURES
  ADVANCED BIOENERGY, LLCDate: February 17, 2009
    By:
    /s/ Richard R. PetersonRichard R. PetersonInterim Chief Executive Officer, Vice
President of Accounting and Finance and
Chief Financial Officer 24




---



##### 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).10.1
    
    Amendment to the Master Loan
Agreement with Farm Credit
Services of America, dated
December 24, 2008.
    
    Incorporated by reference
to Exhibit 10.1 to the
Registrants Current
Report on Form 8-K, filed
on January 29, 2009 
(File
No. 000-52421).10.2
    
    Statused Revolving Credit
Supplement with Farm Credit
Services of America, dated
December 24, 2008.
    
    Incorporated by reference
to Exhibit 10.2 to the
Registrants Current
Report on Form 8-K, filed
on January 29, 2009 
(File
No. 000-52421).10.3
    
    Revolving Credit Agreement,
Letters of Credit with Farm
Credit Services of America, dated
December 24, 2008.
    
    Incorporated by reference
to Exhibit 10.3 to the
 Registrants Current
Report on Form 8-K, filed
on January 29, 2009 
(File
No. 000-52421).10.4
    
    Construction and Revolving Term
Loan Supplement with Farm Credit
Services of America, dated
December 24, 2008
    
    Incorporated by reference
to Exhibit 10.4 to the
Registrants Current
Report on Form 8-K, filed
on January 29, 2009 
(File
No. 000-52421).10.5
    
    Construction and Term Loan
Supplement with Farm Credit
Services of America, dated
December 24, 2008.
    
    Incorporated by reference
to Exhibit 10.5 to the
Registrants Current
Report on Form 8-K, filed
on January 29, 2009 
(File
No. 000-52421).10.6
    
    Forbearance Agreement with
WestLB, dated February 2, 2009.
    
    Incorporated by reference
to Exhibit 10.1 to the
Registrants Current
Report on Form 8-K, filed
on February 9, 2009 
(File
No. 000-52421).10.7
    
    Settlement Agreement and Release
with Ethanol Investment Partners,
LLC and Ethanol Capital
Management
    
    Incorporated by reference
 to Exhibit 10.1 to the
Registrants Current
Report on Form 8-K, filed
on October 22, 2008 
(File
No. 000-52421).31.1
    
    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