Pacific Ethanol looks to amend DIP loan to allow Idaho plant restart

By Jennifer Lanning Drey

Portland, Ore., Nov. 25 - Pacific Ethanol Holding Co. LLC requested court approval to amend its debtor-in-possession financing agreement to account for the restart of operations at its Magic Valley Plant in Idaho, according to a Wednesday filing with the U.S. Bankruptcy Court for the District of Delaware.

Pacific Ethanol said since entering into the DIP credit agreement, the market for ethanol has continued to improve due to factors including declining corn prices and the pending deadline for the Environmental Protection Agency to allow the blend of gasoline with regular gasoline to increase to 15%.

As a result, the company believes reopening the Magic Valley plant is in the best interest of its estate.

Pacific Ethanol is seeking to amend the DIP agreement to include an updated term extension budget to account for the restart of operations at the plant.

The company said the DIP lenders have consented to the execution, delivery and performance of additional agreements necessary for the operation of the plant.

A hearing is scheduled for Dec. 14.

Pacific Ethanol is a Sacramento-based marketer and producer of ethanol. It filed for Chapter 11 bankruptcy on May 18. Its Chapter 11 case number is 09-11713.

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