Replies to post #68924 on BOUNCE (BOING)

[harbs]

leh, nice bounce from the 4.20's - i wimped out..

as for pdae, here's the 8k filed today..someone please translate, tia lol..


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): September 5, 2008
PANDA ETHANOL, INC.
(Exact name of registrant as specified in its charter)
000-50282
Commission File Number

Nevada
(State or other jurisdiction of
incorporation) 20-4799979
(I.R.S. Employer
Identification No.)
4100 Spring Valley, Suite 1002
Dallas, Texas 75244
(Address of principal
executive offices, including Zip Code)
972.361.1200
Registrant’s telephone number, including area code:
Not applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))







Item 1.01 Entry into a Material Definitive Agreement.
On September 5, 2008, Panda Hereford Ethanol, L.P. (the “Borrower”), a wholly-owned indirect subsidiary of Panda Ethanol, Inc. (the “Company”), entered into a Waiver to Depositary and Disbursement Agreement (the “Waiver”) with Société Générale (the “Agent”) and the lenders under that certain Financing Agreement, dated as of July 28, 2006, by and among Borrower, Agent and the lenders named therein, as amended (the “Financing Agreement”). The Waiver provides a limited waiver of departures from certain certifications and requirements to permit a borrowing and disbursement of loan proceeds under the Financing Agreement and that certain Depositary and Disbursement Agreement, dated as of July 28, 2006, by and between Borrower and the Agent (the “Disbursement Agreement”).
As previously disclosed, due to the construction delays and timing for completion of construction of the Hereford facility, Borrower cannot provide the certifications required to request a borrowing under the Financing Agreement or withdrawal of funds from the construction account, including certifications that (i) no default has occurred and is continuing, (ii) it expects to achieve substantial completion by September 30, 2008, (iii) it expects to achieve final acceptance by February 15, 2009, and (iv) it believes it has sufficient funds necessary to achieve completion. Accordingly, Borrower had not completed a draw request to pay for project expenses since May 30, 2008.
Pursuant to the Waiver, the lenders waived the requirements described above to allow (i) a borrowing of approximately $137,000 under the Financing Agreement and (ii) disbursement of approximately $3.8 million requested by Borrower in a September 4, 2008 construction draw request, which request generally included two months of project expenses (except that only one month of certain management fees payable to the Company were included) and a fee in the amount of $565,500 payable to the consenting lenders.
In addition, under the terms of the Waiver, Borrower agreed:
• to cooperate in good faith to reach an agreement regarding the restructuring of the Borrower’s obligations by September 30, 2008;
• to provide or support the provision of certain protections for the lenders in the case of a bankruptcy event with respect to Borrower; and
• that the applicable margin under the Financing Agreement, which is an amount added to the base interest rate and the default interest rate, is increased by 50 basis points to 4.25%.
The Waiver applies only to the specifically requested borrowing and construction draw, and there can be no assurance that the Company will be able to obtain a similar waiver to request a borrowing under the Financing Agreement and disbursements under the Depositary Agreement in future months. Although management of the Company is working to amend or restructure the terms of all or part of the existing debt or to secure additional financing, no assurance can be given that any such amendment, restructuring or transaction may be consummated or that the Company will be able to obtain sufficient funds to complete construction of the Hereford facility or fund ongoing operations.
The foregoing description of the Waiver is a summary only and is qualified in its entirety by the terms of the Waiver, which is attached hereto as Exhibit 10.1, and is incorporated herein by reference.
Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.
The information set forth in Item 1.01 of this report is incorporated herein by reference.