Transmar Commodity Group cash collateral termination date extended

By Caroline Salls

Pittsburgh, March 31 – Transmar Commodity Group Ltd.’s cash collateral use termination date was extended by one month, according to an order filed Thursday with the U.S. Bankruptcy Court for the Southern District of New York.

Specifically, the cash collateral use will now terminate on the earlier of April 30 and the occurrence of an event of default, pushed back from March 31.

According to the order, Transmar’s pre-bankruptcy lender agent has agreed to the extension.

A status conference will be held on April 5 to address issues raised by the official committee of unsecured creditors.

The committee said in a statement filed on March 28 that it does not object to further cash collateral use, but the proposed order causes the committee some concern if the committee is found to have incorrectly interpreted certain provisions related to the scope of its investigation and challenge requirements.

According to the committee’s statement, the cash collateral order includes “language which might potentially be interpreted to suggest that affiliates and subsidiaries, among others, of the prepetition lenders may be entitled to a global release.”

The committee said that release would kick in if the committee does not investigate and begin a challenge against the lender affiliates before the challenge period ends for business transaction-related transfers of more than $11 million.

Transmar said it needs to use cash collateral beyond March 31 to continue to operate its business, pay wages, maintain business relationships with customers, vendors and suppliers, make payroll, pay professionals, make adequate protection payments and maximize the value of its assets.

Morristown, N.J.-based Transmar operates as a full-service cocoa trading and cocoa butter product supplier to the international confectionary industry. The company filed for bankruptcy on Dec. 31 under Chapter 11 case number 16-13625.

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