Panda Ethanol dissolves

In Texas, Panda Ethanol announced that stockholders voted to approve a dissolution and plan of liquidation. Panda Ethanol will distribute any funds or assets remaining to the holder of its preferred stock, who would be entitled to receive up to $2.5 million, plus accrued and unpaid dividends, and then to holders of common stock on a pro rata basis. The company does not believe it will have any funds or assets remaining to make distributions to common stockholders.

The company’s subsidiaries holding and managing its Hereford ethanol refinery filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code. Neither the company nor its shareholders will receive any proceeds from the sale of the Hereford facility.

Free Subscription to the Daily Biofuels Digest e-newsletter

Related Stories

Panda Ethanol subsidiary files Chapter 11; will put Texas ethanol plant up for sale following financing collapse

In Texas, Panda Ethanol's Hereford Biofuels subsidiary filed for Chapter 11 bankruptcy, saying that the refusal by one of its lenders to fund loans had left the plant no choice but to pursue a Section...

Panda Ethanol, RAE cancel corn ethanol plants in Nebraska

In Nebraska, Panda Energy canceled a 100 Mgy ethanol plant that was scheduled for construction near Wallace and RAE canceled a $120 million project in Gothenburg. Panda had previously announced pla...

Panda Ethanol breaks ties with Lurgi, cites delays; Texas-based 115 Mgy waste-to-ethanol plant may require fresh capital to complete

In Texas, Panda Ethanol said that it had fired biomass-to-ethanol contractor Lurgi, saying that its board of directors "lost confidence in Lurgi's ability to finish the facility due to continued const...

Panda Ethanol secures air permit for 115 Mgy plant in Texas

In Texas, the state Commission on Environmental Quality granted an air permit for Panda Ethanol's 115 Mgy ethanol plant in Sherman County. The facility will utilize cow manure in place of natural gas ...

Panda Ethanol restructures finance as manure-to-ethanol plant opening delayed to January

In Texas, Panda Ethanol said that it had completed the refinancing of its manure-to-ethanol project in Hereford. Due to construction delays, the project had been nearing default on loans that will pro...

Panda Ethanol to de-register stock in light of operation subsidiary bankruptcy

In Texas, Panda Ethanol announced that it will file with the SEC to deregister its common stock and suspend reporting. The company's management said that after the bankruptcy of its underlying Herefor...