Pacific Ethanol Repeats Bankruptcy Warning

DIRK LAMMERS

SIOUX FALLS, S.D. (AP) — Pacific Ethanol Inc. on Tuesday delayed its quarterly report and reiterated that it might have to seek bankruptcy protection if it can't restructure its debt or raise additional capital.

The Sacramento, Calif.-based company said in a Securities and Exchange Commission filing that its profit margins are down because its alternative fuel is selling for less, and the company is operating its four ethanol plants at reduced capacities.

The company said it sold 24 percent less ethanol during the quarter at prices that are 28 percent lower from the year-ago period.

Pacific Ethanol delayed its quarterly report because it needs more time to complete the report's disclosures. However, the company said it expects to record a first-quarter loss of $23.9 million, or 43 cents per share, compared with a net loss of $35.2 million, or 90 cents per share, for the same period in 2008.

Pacific Ethanol said it has been trying to restructure its debt and raise additional debt or equity financing, or both, and it has been negotiating with lenders.