USA Synthetic $15 million asset sale to Third Eye affiliate approved

By Kali Hays

New York, June 1 – USA Synthetic Fuel Corp. won court support of a $15 million asset sale to American Future Fuel Corp., an affiliate of Third Eye Capital Corp., according to a Monday order from the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, Third Eye is the administrative agent under a note purchase agreement and unit purchase agreement.

The agent agreed to purchase substantially all assets of USA Synthetic and Lima Energy Co. under a stalking horse agreement executed in March.

Under the agreement, Third Eye will surrender and release a portion of the company’s debtor-in-possession loan, a portion of the note obligations, a portion of the breakup fee and expense reimbursement to be paid if the stalking horse bidder is not the high bidder and credit the sellers $15 million to satisfy payment of the purchase price at closing.

If American Future had not been the ultimate purchaser of the assets, Third Eye would have been entitled to a breakup fee of $450,000 and expense reimbursement up to $1 million.

Cincinnati-based USA Synthetic is a provider of clean energy systems. The company filed for bankruptcy on March 17 in the U.S. Bankruptcy Court for the District of Delaware. The Chapter 11 case number is 15-10599.

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