Trigeant creditor BTB vies to file plan based on $105 million sale

By Kali Hays

New York, Nov. 17 – Trigeant Holdings, Ltd. creditor BTB Refining is seeking a termination of the company’s current exclusive periods to file and solicit votes on a Chapter 11 plan, according to a Nov. 14 motion with the U.S. Bankruptcy Court for the Southern District of Florida.

If the periods are terminated, BTB intends to file its own version of a Chapter 11 plan.

Trigeant received conditional court approval of the disclosure statement related to its reorganization plan on Oct. 30. A hearing to confirm the plan is set for Jan. 7.

BTB said that Trigeant’s proposed reorganization plan “fails to maximize the value of the assets, calls for complex and burdensome litigation, discriminates against minority equity interests and is patently non-confirmable.”

As previously reported, BTB accused Trigeant of filing for bankruptcy to avoid enforcement of BTB’s loan default rights.

The creditor went on to claim that Trigeant’s plan is “yet another attempt” to disenfranchise BTB and one of its owners, Harry Sargent III, as it presents “an aggressive agenda” to prevent the parties from realizing a value from their interests.

According to the motion, BTB’s plan “cures all of these deficiencies.”

BTB’s plan is based on a $105 million sale of Trigeant’s primary refinery asset to Conversion Refining LLC, a wholly owned subsidiary of BTB.

The sale price is comprised of a credit bid of BTB’s first lien on the refinery and cash.

Trigeant is currently in a lockup agreement with Gravity Midstream Corpus Christi, LLC for a $100 million sale of the refinery assets, according to the motion.

As such, BTB said the company is “financially disincentivized from pursuing alternative transactions to realize a higher value for the assets.”

Moreover, BTB says that its validated claim is disputed and that Trigeant’s plan fails to provide any “appropriate mechanism” for the proposed disposal of substantially all company assets.

“The debtors’ failure to remedy the clear defects of the plan has resulted in an enormous waste of time, money and resources of the estates and their constituencies,” the motion stated.

BTB asked that the court immediately terminate Trigeant exclusive periods allowing BTB to move towards confirmation of its plan.

A hearing on the motion is scheduled for Nov. 24.

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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