USA Synthetic closes $15 million sale June 3; DIP agreement terminated

By Caroline Salls

Pittsburgh, June 10 – USA Synthetic Fuel Corp. closed the sale of substantially all of its assets to Third Eye Capital Corp. on June 3, according to an 8-K filed Wednesday with the Securities and Exchange Commission.

As previously reported, the sale was approved by the U.S. Bankruptcy Court for the District of Delaware on June 1.

Under an amendment and assignment, Third Eye transferred all of its rights and obligations as buyer under the purchase agreement to American Future Fuels Corp.

USA Synthetic received total consideration of $15 million under a credit bid.

In addition, the buyer assumed roughly $80 million in liabilities.

According to the 8-K, USA Synthetic’s DIP financing agreement was terminated upon the closing of the asset sale.

The company said it does not expect to be able to distribute any proceeds to stockholders.

Cincinnati-based USA Synthetic is a provider of clean energy systems. The company filed for bankruptcy on March 17. The Chapter 11 case number is 15-10599.

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