Rentech disclosure statement approved; confirmation hearing April 4

By Caroline Salls

Pittsburgh, Feb. 12 – Rentech, Inc. received interim approval of its amended combined plan of liquidation and disclosure statement, according to an order filed Monday with the U.S. Bankruptcy Court for the District of Delaware.

The plan confirmation hearing is scheduled for April 4.

Rentech said the plan calls for the completion of the sales of substantially all of the assets of some wholly owned, non-debtor subsidiaries, including Fulghum Fibres, Inc., Fulghum Fibres Collins, Inc., Fulghum Fibres Florida, Inc., Schuyler Wood Pellet, LLC, Deposit Wood Pellet, LLC and New England Wood Pellet, LLC.

Last week, the company announced that it had received court approval on Feb. 2 to sell the assets of the Fulghum entities for a base purchase price of $33.75 million.

The base purchase price includes the assumption or payoff by Price of roughly $20 million of the Fulghum entities’ debt and provides for a holdback amount of $500,000 to satisfy any post-closing cash working capital adjustment and any indemnification claims.

Under the amended plan, the proceeds of the company’s asset sales will be used to satisfy administrative expense claims, priority tax claims, debtor-in-possession financing claims, secured claims, priority non-tax claims and wind-down expenses in full.

Remaining funds, including proceeds from asset sales and causes of action, will be distributed to holders of general unsecured claims.

Holders of affiliate claims, intercompany claims and equity interests will only receive a distribution if all claims in higher-priority classes are paid in full.

Rentech is a Washington, D.C., wood fiber processing company, which makes pellets for heating and the utility and industrial power generation market. The company filed for bankruptcy on Dec. 19 under Chapter 11 case number 17-12958.

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