Alto Ingredients Inc (ALTO)

[rikelme]

From the today's Form 424B5:

The Plant Owners do not and will likely not have sufficient funds to repay the $6.7 million in debt on or prior to its maturity on June 25, 2013. We are therefore attempting to restructure the debt and/or raise additional capital. If we are unable to raise sufficient capital to repay the debt, we will be in default on that debt and in cross-default on the $88.1 million in revolving and term debt due on June 30, 2016 plus up to an additional $10.0 million in revolving debt (or up to $15.0 million in revolving debt if our request to increase availability under our new revolving credit facility is approved) due June 25, 2015, all of which may be accelerated and become immediately due and payable on June 25, 2013. Our inability to restructure or repay the $6.7 million of debt due on June 25, 2013 prior to its maturity will likely have a material adverse effect on us and our direct and indirect subsidiaries, including Kinergy and the Plant Owners. A material adverse effect on the Plant Owners would likewise materially and adversely harm our business, results of operations and future prospects.

Instead of focusing to pay the debt on time, they use the money they got from the offering to increase the plant ownership? Am I reading this correctly?

Ok... NOW I figured you out Mr. Koehler... (NOT)