Four ethanol plants file for bankruptcy

STOCKTON, Calif., May 19 (UPI) -- Four Pacific Ethanol Inc. production subsidiaries filed for Chapter 11 bankruptcy protection in Delaware, the company said in a statement.

The company did not file for protection and will continue to market and sell ethanol and feed under existing agreements, the statement said.

Market analyst Rick Kment at DTN in Omaha, Neb., said high corn prices and low fuel prices have undermined the ethanol business.

"We're posting a net loss of about 30 cents a gallon, he said.

Pacific Ethanol's plants in Burley, Idaho, and Stockton and Madera, Calif., have already suspended production, but its plant in Boardman, Ore., continues to operate, the Stockton Record reported Tuesday.

Pacific Ethanol's Chief Executive Officer Neil Koehler said the company was "unwavering in our vision of being a leading producer and marketer of low-carbon fuels in the Western United States."

But Kment said the future of the business is unclear. "It's really hard to tell what their long-term plan or their goals are in the industry," he said.