Panda Ethanol restructures funding

By | January 03, 2009
Panda Ethanol Inc. has restructured funding arrangements on its 115 MMgy ethanol plant under construction in Hereford, Texas, in an effort to complete the project by Jan. 30. The restructuring was supported by the project's senior and subordinated lenders. It included the senior lenders waiving all existing defaults that occurred under the original financing agreements. Now, the project can borrow up to $31.5 million for construction-related needs and has $2.5 million available in new proceeds from the Hereford project's subordinated lender. Another $2.5 million in new equity investment from Panda Energy International is expected for use as working capital.