Pacific Ethanol Units File for Bankruptcy Protection
SACRAMENTO, CA --- Pacific Ethanol Inc. announced that its subsidiaries that own its four ethanol production plants have filed for Chapter 11 bankruptcy protection.
The subsidiaries involved in the filing are Pacific Ethanol Holding Co., Pacific Ethanol Madera, Pacific Ethanol Columbia, Pacific Ethanol Stockton and Pacific Ethanol Magic Valley.
The company's other units, including its marketing subsidiaries -- Kinergy Marketing LLC and Pacific Ag. Products LLC -- have not filed for Chapter 11.
The company said that Kinergy has renegotiated and amended its credit facility with Wachovia Capital Finance Corp., and that Wachovia has agreed to continue providing up to $10 million for Kinergy's working capital needs. The term of the amended credit facility extends through October 2010. Kinergy's business is expected to continue uninterrupted.
"We have worked well with our creditors to develop a plan that we believe allows us to continue operations and meet our commitments to our customers and vendors," said Neil Koehler, Pacific Ethanol's CEO and president. "We are unwavering in our vision of being a leading producer and marketer of low-carbon fuels in the Western United States. While the market environment for the ethanol industry has been challenging over the last several quarters, we remain confident that a restructured company will grow and prosper as the demand for low-carbon fuels increases."