Low-carbon renewable fuels producer, Pacific Ethanol Holding, has received court approval to exit bankruptcy through a reorganization plan that will eliminate $290 million worth of debt, The Wall Street Journal reports. The company’s lenders, led by WestLB, will take ownership of the four production plants, although Pacific Ethanol will hold an option to buy up to 25 percent of the equity.

The company’s existing lenders will exchange their debts for ownership of Pacific Ethanol Holding and up to $85 million in new loans, while unsecured creditors, owed $300,000, will be paid in full. Pacific Ethanol has 90 days to exercise an option to purchase up to 25 percent of the company for $30 million.

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