Abengoa Bioenergy wins interim access to $8 million of DIP facility

By Caroline Salls

Pittsburgh, March 4 – Abengoa Bioenergy US Holding, LLC obtained interim court approval to access $8 million of a proposed $41 million of debtor-in-possession financing from Sandton Capital Partners, LP affiliate the Kimberley Fund, LP, according to an order filed Friday with the U.S. Bankruptcy Court for the Eastern District of Missouri.

The final hearing is scheduled for March 29.

The DIP loan will mature on the earliest of the effective date of the plan of reorganization or closing on a sale of substantially all of the company’s assets, the effective date of the closing of the sale of Abengoa’s Ravenna plant and 180 days following entry of the interim DIP financing order.

Cash interest will accrue at 14%. The company may pay the interest in kind, and interest paid in kind will not be counted toward draw limits.

According to the motion, up to $3.8 million of the DIP loan proceeds may be used, together with excess cash revenue from Ravenna facility operations, to restart Abengoa’s York facility.

Abengoa Bioenergy, a Chesterfield, Mo.-based ethanol producer, filed bankruptcy on Feb. 24. The Chapter 11 case number is 16-41161.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.