Thursday, June 10, 2010

Pacific Ethanol (Nasdaq:PEIX) May Reopen Two Idle Plants

Pacific Ethanol (Nasdaq:PEIX) announced recently it is reorganizing the company in order to bring its four production subsidiaries out of bankruptcy.

They opened up the Magic Valley plant located in Idaho earlier in the year, and have plans to open up two more idled ethanol plants soon.

Lenders have already approved of the reorganization plan, and the two idled plants, which are both located in California, may resume production by the end of June.

Pacific Ethanol will be allowed to acquire up to 25 percent of the overall ownership in the new holding company, which has the subsidiaries transferred to it. The cost will be up to $30 million in cash.

Two plants wholly owned by Pacific are now operational - one in Boardman, Oregon, and the other in Burley, Idaho.

Combined they can produce up to 100 million of ethanol annually.

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