DALLAS --- Panda Ethanol Inc. announced its stockholders approved a dissolution and plan of liquidation. On July 16, Panda Ethanol's stock transfer books were closed. 

After paying the company's creditors, Panda Ethanol will distribute any funds or assets remaining to holders of its preferred stock, who would be entitled to receive up to $2.5 million. The company said it does not believe it will have any funds or assets remaining to make distributions to common stockholders. 

The company filed for Chapter 11 bankruptcy back in January.