Pacific Ethanol agrees to make installment guarantor judgment payments

By Caroline Salls

Pittsburgh, July 21 - Pacific Ethanol, Inc. entered into an amendment to an August 2009 settlement agreement that allows the company to make a $1.55 million judgment payment in installments, according to an 8-K filed Wednesday with the Securities and Exchange Commission.

Under the settlement agreement, Pacific Ethanol had until June 30 to pay $1.55 million of a $1.9 million judgment before its creditor could enforce payment.

According to the 8-K, the settlement resolved a lawsuit between the company and the judgment creditor related to Pacific Ethanol's alleged debt guarantor obligations.

Under the amendment, Pacific Ethanol must pay $100,000 to the creditor by July 31, $100,000 before Sept. 30, $200,000 by Oct. 31, $200,000 by Nov. 30 and the principal balance of the judgment by Dec. 31.

The company has also agreed to pay 1% interest on the judgment amount, as well as to reimburse $5,000 of the creditor's fees by July 31.

If Pacific Ethanol misses any of the judgment payments, interest will accrue after the default at 14% and the creditor can accelerate payment of the entire unpaid amount.

Pacific Ethanol is a Sacramento-based marketer and producer of ethanol. It filed for Chapter 11 bankruptcy on May 18, 2009 in the U.S. Bankruptcy Court for the District of Delaware. Its Chapter 11 case number is 09-11713.

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