Pacific Ethanol’s wholly-owned subsidiaries, consisting of Pacific Ethanol Holding Co. LLC and 4 ethanol plant subsidiaries, just announced that they have filed an amended reorganization plan with the Delaware bankruptcy court overseeing Pacific Ethanol’s bankruptcy procedures.

The amended plan now includes terms allowing Pacific Ethanol to buy up to 25% of the ownership interests for New PEH, a holding company which will take ownership of the subsidiaries mentioned above. Pacific Ethanol can exercise this option any time with the 90 days after the court approves the plan for a payment of $30 million in cash.

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Also under the plan, New PEH term debt will go down to $50 million from $115 million, a $67 million difference. New PEH will have $15 million working capital, which could be increased to up to $5 million.

In a press release, Neil Koehler, Pacific Ethanol’s CEO and President, commented on the amended plan:

“We believe the Amended Plan is a significant improvement over the original one. Under this plan the Plant Subsidiaries would emerge with an even lower level of debt while providing sufficient liquidity to support existing operations and resume production at the Madera and Stockton, California facilities. The opportunity to continue as an owner of the production facilities supports our strategy of being the leading producer and marketer of low carbon renewable fuels in the Western United States as the market for our products and services continues to expand.”