Frequently Asked Questions for Customers
What is the Chapter 11 process all about?
Chapter 11 is a legal mechanism for court-supervised reorganization or restructuring of a company’s obligations. Chapter 11 provides a way for companies to gain time to restructure and reduce their debts while continuing day-to-day operations.
What entities filed for Chapter 11?
Each of the ethanol plants, Madera, Stockton, Columbia, and Magic Valley and the holding company of those plants, Pacific Ethanol Holding Co., filed for Chapter 11. The Company and its marketing subsidiaries, Kinergy Marketing LLC ("Kinergy") and Pacific Ag. Products, LLC ("PAP"), have not filed for Chapter 11 bankruptcy protection. The Company is expected to continue to manage the Plant Subsidiaries under an Asset Management Agreement and Kinergy and PAP are expected to continue to market and sell the Plant Subsidiaries’ ethanol and feed production under existing Marketing Agreements.
How does the Chapter 11 filing affect customers of Pacific Ethanol and its subsidiaries?
The customers of Pacific Ethanol should not see any change in business terms or process. The Chapter 11 filing is for protection from indebtedness only and customers that owe money to the companies in chapter 11 are still required to pay according to their terms.
Where can I get more information?
Information about the proceedings is available at http://chap11.epiqsystems.com/PEI/project/default.aspx