Pacific Ethanol Chapter 11 now likely, says Raymond James analyst

In California, Pacific Ethanol reported a loss of $0.61 per share in the 4th quarter and has a negative working capital of $288 million.  Raymond James analyst Pavel Molchanov said that a Chapter 11 bankruptcy filing is now likely as the company is behind in its construction term-loan payments, revolving line of credit and has received a “going concern” notice from its accountants. The company reported higher than expected revenues but sharply lower earnings than analyst expectations. The company has struck forbearance agreements with its lenders through April 30th, but Raymond James has forecast negative operating income for the remainder of 2009 and all of 2010.

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