Pacific Ethanol aims to reopen as market improves

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By Gina Jameson

Story Published: Nov 27, 2009 at 9:04 PM CDT

Story Updated: Nov 27, 2009 at 10:45 PM CDT

11/27/09

BOISE, Idaho (AP) _ A shuttered southern Idaho ethanol refinery
could resume fuel production, citing improved market conditions.

California-based Pacific Ethanol Inc. filed documents in U.S.
Bankruptcy Court in Delaware this week asking for permission to
reopen its plant in Burley, Idaho. A court hearing is set for Dec.
14.

In addition to falling corn prices that reduce its raw material
costs, Pacific says the market is being buoyed by a pending federal
deadline to allow ethanol blends in gasoline to increase from 10
percent to 15 percent.

The company says more favorable market conditions have produced
``positive revenues'' at its plant in Boardman, Ore., the only one
of Pacific's four facilities still operating.

Opening the Burley facility, closed since January, would produce
additional revenue to help meet obligations with lenders, the
company said.

Pacific's secured debt topped $270 million when the company
filed for Chapter 11 bankruptcy protection in May.

(Copyright 2009 by The Associated Press. All Rights Reserved.)
APNP-11-27-09 1748MST<

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