As promised, Sacramento renewable fuels producer and marketer Pacific Ethanol Inc. said Wednesday that it has repaid $10 million in loans that were used to help buy back a 67 percent stake in its four production plants.
The payoff was another step forward in a process that began with a 2009 bankruptcy filing by PEI's production subsidiaries.
Following last week's completion of a stock offering that pumped $11 million into PEI, company President and CEO Neil Koehler said proceeds would go to pay off the unsecured notes.
Koehler said the action significantly reduces "the company's short-term debt obligations and related interest payments. This and the recent increase in our ownership position in the plants are important milestones marking progress in our plans to improve the profitability of our business."
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