vilyfijohy.wordpress.com
Pacific Ethanol and its marketing division did not filefor bankruptcy. The Sacramento-bases company — founded in Fresno by former California Secretary of Stats BillJones — has been battlinfg a critical cash with high corn prices and lowefr ethanol prices greatly affecting the bottom The company has warned about the possibilitgy of bankruptcy in recent weeks. Pacific Ethanol, like many ethanol producere nationwide, has been attempting to refinance loans, receivinbg an extension in March that expiredfin April. The action prompted the company’s ethanol-producing units to file the voluntaryy bankruptcy petitionin Delaware.
The company’s marketin g subsidiaries — and — have not filed for bankruptcy. West LB and othefr creditors have agreedto debtor-in-possession financing of $20 million. “We have worked with our creditors to developl a plan that we believe allows us to continue operations and meet our commitmentse to our customersand vendors,” Pacific Ethanol chietf executive officer and presidenr Neil Koehler said in a news release. “While the markeg environment for the ethanol industry has been challenging over the lastsevera quarters, we remain confident that a restructure d company will grow and prosper as the demand for low-carbonb fuels increase.
” In addition, -owned offeredd as much as $10 million in financing to Kinergy Marketing through Octobe r 2010. ‘We appreciate the support of West LB, Wachovia and the work of our managementf team,” Jones said. “Our objective is to move this procesd forward as quickly as possible so that we can maintain our focusx on serving our fuel and feed The company has delayed filingits first-quarter financials due to the efforts to restructurr debt, but said it expects net sales of abouf $86.7 million for the quarter ended March 31, compared to net sales of $161.5 million for the same period in 2008.
The company estimates it sold 24 percentt less ethanol in the first quartert compared to theprevious year, and the sale price fell to $1.6r per gallon, 28 percent less than in first-quarte r 2008. The company has closed three of its four productio plants this year as it tried to renegotiatseloan terms. The company has plants in Stockton, Boardman, Ore., and Burley, Idaho. Pacific Ethanolo moved its headquarters to Sacramentl inJanuary 2007. The company attracted the attention of many environmentalltyfriendly investors, including Microsoft Corp. chairman and founder Bill who has since soldhis shares.
Shares of Pacific Ethanopl (Nasdaq: PEIX) dropped 27 cents to 30 close toits one-year low of 20 About 4.6 million shares traded as of 10 a.m. Monday, about eighgt times its average daily volumeof 527,0000 during the past three months.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment