Renew Energy seeks approval of cash collateral use, DIP loan extension

By Caroline Salls

Pittsburgh, April 13 - Renew Energy LLC requested court approval to use the cash collateral of Bankers' Bank and West Pointe Bank and extend its debtor-in-possession facility to the maturity date of the cash collateral, according to a Friday filing with the U.S. Bankruptcy Court for the Western District of Wisconsin.

Renew said its $2.5 million DIP facility from West Pointe Bank originally matured on March 1 because the company failed to obtain takeout financing from other lenders by that date.

Under Friday's motion, the cash collateral use and DIP financing would mature upon the earlier of a sale of substantially all company assets or occurrence of a specified event of default.

In accordance with the cash collateral use, the company is required to file a bid procedures motion by April 22, hold an auction by May 15, obtain approval of the sale by May 20 and close on the sale by June 1.

Renew Energy, a Jefferson, Wis., ethanol producer, filed for bankruptcy on Jan. 30. Its Chapter 11 case number is 09-19491.

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