US Pacific Ethanol halts production at two more plants

27 February 2009 22:19  [Source: ICIS news]

HOUSTON (ICIS news)--Financially strapped US ethanol maker Pacific Ethanol has halted production at two more units due to extended unfavourable market conditions, the company said on Friday.

Pacific said it was temporarily suspending operations at its Burley plant in Idaho and at its Stockton unit in California, each having 60m gal/year (227m litres/year) of capacity.

The company on 12 January shut down its 40m gal/year Madera plant in California, also citing unfavourable conditions for producing ethanol.

Pacific Ethanol has another facility in Boardman, Oregon, with 40m gal/year of capacity. The ethanol maker also owns a 42% stake at a 48m gal/year plant in Windsor, Colorado.

The company also announced on Friday that its lenders had agreed to extend forbearance agreements until 31 March in respect to the default of certain loan covenants.

Pacific Ethanol said the extension would allow it to continue attempts to negotiate new loan terms.

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By: William Lemos
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