Louisiana Pellets sets procedures for sale of facility-related assets

By Caroline Salls

Pittsburgh, Jan. 18 – Louisiana Pellets, Inc. requested court approval of the bid procedures for the proposed sale of substantially all of its assets, according to a motion filed Wednesday with the U.S. Bankruptcy Court for the Western District of Louisiana.

Specifically, the company is looking to sell all or substantially all of the property associated with a solid-waste disposal and wood biomass pellet manufacturing facility located in Urania, La.

The proposed bid deadline is Feb. 24, and the proposed auction date is March 2.

Under the bid procedures, Louisiana Pellets may designate an opening bid for the auction and may agree that the opening bidder will have stalking horse status and protections, including a break-up fee and expense reimbursement in an amount not to exceed 2% of the proposed purchase price.

The bid protections would be paid to any stalking horse bidder if it is not ultimately the high bidder for the assets.

Bids at auction must be submitted in minimum increments of $500,000.

Based in Urania, La., Louisiana Pellets manufactures wood pellets. The company filed for bankruptcy on Feb. 18, 2016 under Chapter 11 case number 16-80162.

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