Pacific Ethanol defers $1.9M obligation

SACRAMENTO, Calif. - Pacific Ethanol Inc. last week amended a settlement agreement with a judgment creditor to postpone a $1.9 million payment until spring.

The payment results from a 2008 court judgment against Pacific Ethanol.

The East Oregonian reported Nov. 14 that Pacific Ethanol managers feared they might miss a $1.9 million payment due Dec. 1. They shared that information in a federally-required quarterly report for the period ended Sept. 30.

But another federal report filed Nov. 16 described the amendment, which resolved litigation between the company and the judgment creditor.

"The amendment provides that the judgment creditor will not undertake any efforts to enforce or collect on the judgment until April 1, 2010," the most recent report stated.

The amendment provides that Pacific Ethanol was to have remitted approximately $214,000 to the creditor by Nov. 20 and $150,000 by Dec. 18, 2009.

Pacific Ethanol, which operates an ethanol plant at the Port of Morrow, has said it needed to defer the payment because ethanol prices are down 30 percent this year, which contributes to a cash-flow problem.

- Dean Brickey

source: eastoregonian