Dakota Plains asset sale procedures, interim DIP financing approved

By Caroline Salls

Pittsburgh, Dec. 30 – Dakota Plains Holdings, Inc. received court approval of the bid procedures for the proposed $8.55 million sale of substantially all of its assets, as well as interim court approval to use $200,000 of a proposed $2 million in debtor-in-possession financing, according to orders filed Dec. 29 with the U.S. Bankruptcy Court for the District of Minnesota.

BioUrja Trading, LLC is the stalking horse bidder for the assets.

If BioUrja is not ultimately the high bidder, Dakota Plains will pay it a 3.5% breakup fee.

Competing bids are due by 12:59 a.m. ET on Jan. 20 and must at least equal the amount of the stalking horse bid, plus the breakup fee and a $100,000 initial minimum overbid.

Subsequent bids must be made in minimum increments of $50,000.

An auction will be held on Jan. 23, if necessary, and the sale hearing is scheduled for Jan. 27.

SunTrust Bank is the administrative agent for the DIP financing.

The DIP facility will mature on the earliest of 90 days from the closing date, the closing of the sale transaction, the effective date of a Chapter 11 plan and acceleration of the loan obligations.

Interest will accrue at a rate of 8%.

The final DIP financing hearing is scheduled for Jan. 17.

Dakota Plains, a midstream energy company based in Wayzata, Minn., filed for bankruptcy on Dec. 20 under Chapter 11 case number 16-43711.

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