Pacific Ethanol unit files reorganization plan

Energy company Pacific Ethanol Inc (PEIX.O) said its wholly owned subsidiary Pacific Ethanol Holding Co LLC filed a reorganization plan in a Delaware bankruptcy court and that it expects the unit to exit Chapter 11 near the end of the second quarter of this year.

The proposed plan restructures $293.5 million of the unit's debt to a combination of equity and $115 million of secured and subordinated debt.

It also provides for up to $35 million in a new line of credit to support current and future plant operations, the company said.

Pacific Ethanol also said it was in talks with its lenders regarding a potential acquisition of ownership interests in the reorganized unit and that it would amend its plan if the negotiations resulted in an agreement.

Pacific Ethanol Holding Co operates production plants in California, Oregon and Idaho and was put into bankruptcy by its parent in May last year.

Pacific Ethanol's marketing arm, which buys and sells ethanol, did not file for Chapter 11.

Sacramento, California-based Pacific Ethanol is the largest West Coast-based producer and marketer of ethanol.

source: reuters