Trigeant exclusivity terminated for creditor BTB; competing plan filed

By Caroline Salls

Pittsburgh, Dec. 16 – Trigeant Holdings, Ltd. creditor BTB Refining’s motion for termination of Trigeant’s exclusive periods for filing and soliciting votes on a Chapter 11 plan was approved Monday by the U.S. Bankruptcy Court for the Southern District of Florida.

In addition, BTB filed a competing Chapter 11 plan for Trigeant’s case.

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 termination motion, BTB’s plan “cures all of these deficiencies.”

Trigeant said in an objection to the termination motion that BTB is attempting to undermine a bid by Gravity Midstream Corpus Christi, LLC, which provides a 100% return to creditors, by causing a default under the company’s plan support and asset purchase agreements as well as a default under the debtor-in-possession financing provided by Gulf Coast Asphalt Co., LLC.

BTB is also trying to impede or delay confirmation of Trigeant’s first amended plan, even though it is aware that the current confirmation schedule is of critical important to Gravity as plan sponsor, the objection said.

BTB plan terms

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.

Treatment of creditors under the BTB plan will include:

• Administrative expense claims, priority tax claims, priority claims and all debtor-in-possession loan claims will be paid in full in cash;

• BTB will be paid in full in cash plus interest for its $23.47 million secured claim, provided that it can credit bid the claim in the sale transaction;

• PDVSA Petroleo, SA will be paid in full in cash plus interest for its $55.37 million secured claim, provided that it can credit bid the claim;

• Holders of miscellaneous secured claims, general unsecured claims, claims against Trigeant, LLC and claims against Trigeant Holdings will either be paid in full in cash with interest, or, if the claims are disputed, the distribution amount will be placed in reserve to be paid after allowance; and

• Holders of equity interests will retain their interests.

Plan comparison

Meanwhile, treatment of creditors under the proposed plan includes 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 Refining 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;

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

A hearing on confirmation of both plans is scheduled to begin on Feb. 19. The termination order applies only to BTB, the filing said.

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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