Trigeant files reorganization plan with $100 million sale agreement

By Kali Hays

New York, Sept. 17 – Trigeant Holdings, Ltd. and Trigeant, LLC, holding companies of Trigeant, Ltd., filed a joint Chapter 11 plan of reorganization Sept. 16 with the U.S. Bankruptcy Court for the Southern District of Florida detailing plans to sell substantially all of the companies’ assets.

Trigeant entered into an asset purchase agreement Tuesday with Gravity Midstream Corpus Christi, LLC with a cash purchase price of $100 million.

Gravity has committed a $10 million deposit to Trigeant, which is currently being held in escrow to cover damages if Gravity breaches the agreement.

Trigeant said funds from the sale will be sufficient to pay the full amount of claims asserted against it.

After the effective date of the plan, the reorganized Trigeant entities will exist as separate corporate businesses, according to the plan.

As previously reported, Trigeant, Ltd.’s Chapter 11 bankruptcy case was dismissed in April with prejudice to the filing of a petition under any chapter of the Bankruptcy Code until the Fifth Circuit Court of Appeals issues a mandate in the case of BTB Refining, LLC v. Pdvsa Petroleo, SA.

Trigeant said it believes BTB and Pdvsa have reached an agreement settling the case.

In January 2014, BTB asked the court to dismiss Trigeant's bankruptcy case, arguing that unrebutted evidence established that Trigeant’s estate was administratively insolvent.

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

Under the proposed plan, BTB’s claim against Trigeant will be paid in full after a Bankruptcy Court ruling on the allowed amount.

Treatment of creditors under the plan will include the following:

•Holders of allowed administrative expense claims, priority tax claims, priority claims and all debtor-in-possession loan claims will be paid in full in cash;

•The disputed claims of BTB and Pdvsa will be paid in any amount allowed by the court from the disputed claims reserve;

• General unsecured claims and miscellaneous allowed secured claims will be paid in cash plus interest at the Prime rate and;

•Holders of equity interest claims will receive distribution from remaining reserve funds after all other allowed claims have been paid in full.

According to Trigeant, no class of claimants is impaired under the plan and each is deemed to have accepted the plan.

Trigeant asked that the court enter an order allowing it to forgo solicitation of the proposed plan and the filing of a disclosure statement as all creditors will be receiving payment under the plan.

A hearing to confirm the plan is scheduled for Nov. 12.

Trigeant, a Boca Raton, Fla.-based petroleum company, filed for bankruptcy on Aug. 25. The Chapter 11 case number is 14-29027.

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