Key Developments For Pacific Ethanol, Inc.
Pacific Ethanol, Inc. (PEIX.O) (Consolidated Issue listed on NASDAQ Global Market)
Pacific Ethanol Inc's Plant Subsidiaries Subsidiaries File For Chapter 11 Bankruptcy Protection
Pacific Ethanol Inc announced that its subsidiaries, which own its four wholly-owned ethanol production facilities (Plant Subsidiaries), have filed voluntary petitions under Chapter 11 of the U.S. Bankruptcy Code in the District of Delaware in an effort to restructure their indebtedness. The Company and its marketing subsidiaries, Kinergy Marketing LLC (Kinergy) and Pacific Ag. Products, LLC (PAP), have not filed for Chapter 11 bankruptcy protection. The Company is expected to continue to manage the Plant Subsidiaries under an Asset Management Agreement and Kinergy and PAP are expected to continue to market and sell the Plant Subsidiaries' ethanol and feed production under existing Marketing Agreements. The Plant Subsidiaries and WestLB AG and certain other lenders under the Credit Agreement dated February 27, 2007, have agreed in principle to first priority secured debtor-in-possession (DIP) financing in a maximum amount of $20 million that is intended to enable the Plant Subsidiaries to continue to satisfy customary obligations associated with their ongoing operations. Kinergy has renegotiated and amended its credit facility with Wachovia Capital Finance Corporation. 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.
Pacific Ethanol Inc Appoints Bryon T. McGregor As Interim CFO-Form 8-K
Pacific Ethanol Inc reported in its Form 8-K that on April 21, 2009, Bryon T. McGregor has been appointed as Interim Chief Financial Officer (CFO) and Principal Financial and Accounting Officer of the Company,, effective immediately.
Pacific Ethanol Inc Terminates Chief Financial Officer-DJ
Dow Jones reported that Pacific Ethanol Inc has terminated its chief financial officer, Joseph Hansen, the Company said in a filing to the Securities and Exchange Commission.
Pacific Ethanol Inc Announces Operations At Two Production Facilities Suspended
Pacific Ethanol Inc announced that it has temporarily suspended operations at two 60 million gallon per year ethanol facilities located in Burley, ID and Stockton, CA due to extended unfavorable market conditions for producing ethanol. The Company previously announced the decision to temporarily suspend its 40 million gallon per year production facility in Madera, CA as of January 12. The Company, through its wholly owned ethanol marketing arm, Kinergy Marketing, intends to continue serving its ethanol customers with production from other Pacific Ethanol plants and Kinergy suppliers.
Pacific Ethanol Inc Reaches Forbearance Agreements With Lenders
Pacific Ethanol Inc announced that it has entered into two separate forbearance agreements as it attempts to negotiate new loan terms with its lenders. These agreements provide that the Company's lenders will refrain from exercising their rights and remedies through February 27, 2009, in respect of certain loan covenant defaults. Negotiations are ongoing with the Company's lenders, namely Wachovia Capital Finance Corporation (Western), with respect to its operating line of credit for Kinergy Marketing, and WestLB AG and the other lenders under the Credit Agreement dated February 27, 2007 with respect to its term loans and working capital lines of credit for its wholly owned ethanol production facilities.
