PEIX stock is one of the biggest gainers in Tuesday’s trading session after Pacific Ethanol Inc (NASDAQ:PEIX) negotiated terms with lenders for the extension of its debt.
Immediate Relief
In a development that must have come as a major relief for Pacific Ethanol Inc shareholders, the company announced that it has negotiated with its lenders and managed to get an extension on its debts. The company’s debts were due this past Sunday, and it seemed that the company was on the precipice of default. However, the fact that the deadline has been extended comes as a massive boost for Pacific Ethanol.
More importantly, the company is one of the pillars of the business community over at Sacramento. Pacific Ethanol is the biggest publicly traded firm in that region. The company announced that it has managed to secure long-term arrangements with regards to its debts with the lenders. In addition to that, Pacific Ethanol has also managed to get short-term extensions in order to prepare the paperwork for the revised loan agreements with the different lenders.
At the time of writing, PEIX stock climbed as much as 20% at $0.575 on the back of the news.
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The company, which is involved in the renewable fuel space, was up against a deadline that was ending on December 15 with its lenders.
The lender in question is CoBank, which is based out of Colorado and had already extended the company’s loans twice this year. As a matter of fact, it was only last month that Pacific Ethanol had been given its previous extension by CoBank. Pacific Ethanol is looking to repay its loans diligently, and the Chief Executive Officer of the company, Neil Koehler, said as much: “We are working constructively with all our lenders to conclude agreements that will support the company as we continue to implement our strategic plan.”
That being said, the investors would definitely be happy at the recent extension that the company managed to negotiate.
PEIX stock is down over 45% so far this year.
Featured image: DepositPhotos © belchonock
