Paradox gets OK of protective advance loan from Washington Federal

By Sarah Lizee

Olympia, Wash., June 15 – Paradox Resources, LLC secured approval of a protective advance loan from prepetition lender Washington Federal Bank, NA and continued use of cash collateral, according to an order filed late Wednesday with the U.S. Bankruptcy Court for the Southern District of Texas.

As previously reported, the company said it is continuing to make good faith progress toward obtaining post-petition financing, but the court’s utilities order required the debtors to make adequate assurance deposits into an account by Wednesday.

The company said that, given its current cash position, there was an emergency need to borrow enough funds to make the deposit.

Washington Federal agreed to make the protective advance in the amount of $235,970, with no interest or fees.

The lender has also agreed to the continued use of cash collateral.

A further hearing on the cash collateral use is scheduled for June 22.

Paradox Resources is a Houston-based midstream company primarily focused on helium processing and carbon capture, utilization and sequestration. The company filed bankruptcy on May 22 under Chapter 11 case number 23-90558.

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