Bill Gates chops Pacific Ethanol holdings by 1 million shares

In California, Bill Gates reduced his holdings in Pacific Ethanol to 9.5 million shares, from 10.5 million, out of the 41.8 million shares outstanding. This reduces Gates’ holdings from 21 percent to 18.5 percent in the struggling California-based corn ethanol producer and marketer. Gates private investment arm, Cascade Investments, previously converted 3.75 million preferred shares to 7.5 million equity shares.

Last November, Cascade Investments filed to convert its preferred shares in Pacific Ethanol to common stock and register a potential sale.

Cascade owns 21 percent of Pacific Ethanol and has lost more than $60 million on the stock since August. Cascade invested $84 million in 2005.

The state of California will raise $11.5 million from the sale of tax-exempt bonds that will be used to provide a low-interest loan to Pacific Ethanol. Critics of the move say that the bond sale is permitted under state law for companies who classify part of their plant as “waste treatment plants”, but that the production of ethanol and distillers grains involves no waste treatment.

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