Panda Ethanol has announced the successful restructuring of funding arrangements on a 115-million gallon-per-year, biomass-fueled ethanol refinery in Hereford, Texas.

The restructuring was made with the support of the project’s lenders and will allow for the completion of construction and startup of the facility.

“The successful restructuring of the Hereford project’s funding arrangements represents a vote of confidence in our ability to manage the remaining construction at the Hereford facility,” said Darol Lindloff, chief executive officer of Panda Ethanol. “We continue to believe that, once completed, the Hereford refinery will be one of the most cost-efficient ethanol production facilities in the United States.”

Panda Ethanol expects to complete construction of the Hereford refinery by January 30, 2009. The company has disclosed that it may need to obtain additional working capital for the future operation of the facility depending on future market conditions and commodity pricing.