Trigeant lender BTB seeks dismissal, cites administrative insolvency

By Caroline Salls

Pittsburgh, Jan. 22 -Trigeant, Ltd. putative lender BTB Refining LLC is seeking dismissal of Trigeant's Chapter 11 bankruptcy case, according to a Wednesday filing with the U.S. Bankruptcy Court for the Southern District of Florida.

BTB said unrebutted evidence at a Jan. 17 hearing established that Trigeant's estate is administratively insolvent.

BTB said the company's solution to its operational deficits "is to burden the estate with administrative loans that it will be unable to repay."

BTB said the company's debtor-in-possession lender is now unwilling to lend more than $374,000 on an administrative basis. As a result, BTB said the company is now seeking approval to obtain $3 million in financing from Frontera Refining LLC and grant Frontera a superpriority lien on its property.

In addition, BTB said Trigeant would not even have title to its refinery without a Texas court's ruling that BTB's foreclosure sale was a fraudulent transfer.

If the Texas judgment is reversed, BTB said Trigeant does not even own the refinery. BTB said there are nearly $80 million in secured liens on the refinery.

According to the motion, a condition to the Frontera priming lien is that Frontera serve as the stalking horse bidder for Trigeant's assets, provided that it bid at least $30 million, "far less than half of the secured debt in this case."

"Given its anemic operating results, the debtor surely cannot contend that it has any prospects of earning its way out of insolvency," the motion said.

"Therefore, the court is confronted with an insolvent debtor on life support who proposes to erode the positions of its secured creditors by slapping a $3 million priming lien on top of its debt structure."

Trigeant, a Boca Raton, Fla.-based, petroleum company, filed for bankruptcy on Dec. 2. The Chapter 11 case number is 13-38580.

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