Shares in the suffering utility Pacific Ethanol shot up over 8 percent on Tuesday, reaping the rewards of cheaper ethanol prices, thanks largely to what is expected to be a bumper crop year for U.S. corn. Units of Pacific Ethanol that owned four ethanol plants filed for Chapter 11 protection last month, stung by volatile prices for corn, low fuel demand and the credit crisis.******A senior company official at India’s Suzlon Energy said the wind power company was looking at selling assets and shares to lower its debt, dealing a major blow to its shares, falling 11.44 percent in Tuesday trading.
Shares in Pacific Ethanol lost almost half their value in morning trading after the biggest West Coast-based producer and marketer of ethanol announced that it had put its production facilities in California, Oregon and Idaho into Chapter 11 bankruptcy.
The company said on May 12 that it would likely need to file for bankruptcy if it was not able to restructure its debt.
A string of energy firms have filed for Chapter 11 recently, suffering from weak U.S. demand that has depressed prices and margins. VeraSun Energy, once the largest publicly listed U.S. ethanol maker, filed for bankruptcy last year.