Replies to post #25551 on Alto Ingredients Inc (ALTO)

[kel3]

Sacramento Business Journal May 29, 2014, 11:27am PDT
Pacific Ethanol to issue more shares to preferred shareholders

Mark Anderson
Staff Writer-
Sacramento Business Journal

Sacramento-based Pacific Ethanol Inc. agreed to issue more stock to holders of some of its preferred shares to make up for accrued and unpaid dividends, and the holders of that stock will not exercise their shares through Nov. 30, 2015.

The holders of Series B Cumulative Convertible Preferred Stock will get 120,316 shares of company stock worth just under $1.5 million. As of May 22, holders of those shares were owed $3.7 million of accrued and unpaid dividends.
The move saves the company cash and shareholders get more shares.
Pacific Ethanol (NASDAQ: PEIX) was launched in 2003, and borrowed $200 million to build ethanol plants in Oregon, Idaho, Stockton and Madera.

The ethanol producer and marketer has been rebuilding its balance sheet since it put its four ethanol plants into bankruptcy in the spring of 2009, when corn prices spiked and ethanol demand fell. After the bankruptcy, Pacific Ethanol continued to manage and operate the ethanol plants.

Over the years, it has been buying the ethanol plants back, and now owns 91 percent of the facilities.

Pacific Ethanol produces and sells low-carbon renewable fuels. The four ethanol production plants have a combined annual production capacity of 200 million gallons. It also sells ethanol to oil companies and gasoline marketers who blend ethanol into gasoline. It also sells byproducts as animal feed.

[Stockrosen]

This little writing is saying what is goin on:

http://www.pacificethanol.net/resources/destination-ethanol

The Future

Koehler said that there are plans to restart the Madera, CA, biorefinery but no date has been set. Uncertainty in the market because of possible reductions in the amount of biofuel required by the Renewable Fuel Standard (RFS) in 2014 are clouding those prospects. “Until we resolve not being able to blend higher percentages of ethanol, there is too much installed capacity in the industry,” Koehler said. “Ethanol needs more access to the market. I’m very confident that market access will be resolved eventually, but it needs to be sorted out.”

“Expansion of ethanol production will come through efficiency upgrades at Pacific Ethanol’s plants. Additional co-product sales such as carbon dioxide and the addition of cellulosic bolt-on technologies are also being contemplated, Koehler said. “The industry is stronger and healthier than ever,” Koehler stated. “The long-term demand for ethanol will continue to increase due to its economic advantages as it continues to trade at a discount to gasoline, its position as the highest-performing fuel on the market, and the support of federal and state regulations.”

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