US Pacific Ethanol shares zigzag on bankruptcy fears

02 April 2009 22:10  [Source: ICIS news]

HOUSTON (ICIS news)--Shares in US ethanol maker Pacific Ethanol went on a roller-coaster ride on Thursday amid fears that the company may file for bankruptcy protection by the end of the month.

Pacific Ethanol earlier in the week warned that it may run out of cash by the end of April unless it is able to restructure its debts and obtain new funding.

The ethanol maker owes $246m (€187m) in debt associated with the construction of its plants and $5.3m under its revolving credit facility.

The company has halted production at three of its four units, citing unfavourable market conditions.

Pacific Ethanol’s lenders agreed to extend forbearance agreements until 30 April, the company said in a filing with the Securities and Exchange Commission (SEC).

The company’s common stock PEIX fell by as much as 7% on Thursday before closing 6% higher at 35 cents on NASDAQ.

That compares with a 52-week high of $6.86 and a low of 20 cents.

($1 = €0.76)

For more on ethanol visit ICIS chemical intelligence
Bookmark Simon Robinson’s Big Biofuels Blog for some independent thinking on biofuels

By: William Lemos
+1 713 525 2653

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly