Panda Ethanol, Inc. Stockholders Approve Liquidation Plan

DALLAS, July 17 /PRNewswire-FirstCall/ — Panda Ethanol, Inc. (Pink Sheets: PDAE) today announced that, by written consent dated July 16, 2009, Panda Ethanol’s stockholders voted to approve a dissolution and plan of liquidation. As of the close of business on July 16, 2009, Panda Ethanol’s stock transfer books were closed, and Panda Ethanol submitted a request to the Pink Sheets to suspend quotation.

Pursuant to the plan of liquidation, after payment of all claims, obligations and expenses owing to the company’s creditors, 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.

As previously disclosed, on January 23, 2009, 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.

Panda Ethanol has filed a certificate of dissolution with the Secretary of State of the State of Nevada. On March 30, 2009, Panda Ethanol filed a Form 15 with the Securities and Exchange Commission to deregister its common stock under Section 12(g) of the Securities Exchange Act of 1934, as amended, and suspend the company’s reporting obligations under Sections 13(a) and 15(d) of the Exchange Act. The Company is no longer a public reporting company.

SOURCE Panda Ethanol, Inc.