Anaergia unit Rialto gets interim access to cash collateral

By Sarah Lizee

Olympia, Wash., July 17 – Anaergia Inc. subsidiary Rialto Bioenergy Facility, LLC received interim access to cash collateral, according to an order filed Monday with the U.S. Bankruptcy Court for the Southern District of California.

Judge Christopher B. Latham said the company needs access to the cash collateral in order to continue the operation and maintenance of its business for working capital and operational needs.

Latham had previously said that he had considered the debtor’s cash collateral and debtor-in-possession financing motion, UMB Bank NA’s opposition, the official committee of unsecured creditors’ limited opposition, the debtors’ reply, the committee’s reply and its own docket.

While the court is inclined to grant access to cash collateral, it is currently not inclined to grant the motion for DIP financing, given the possibility of a final cash collateral order and potential alternative financing from UMB Bank, as trustee with an interest in the collateral, Latham had said.

Anaergia is a Burlington, Ont.-based company that was created to turn organic waste into renewable natural gas, fertilizer and water, using proprietary technologies. Subsidiary Rialto Bioenergy is based in Carlsbad, Calif., and filed Chapter 11 bankruptcy on May 25 under case number 23-01467.

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