Paradox Resources gets final approval of $1.1 million DIP financing

By Sarah Lizee

Olympia, Wash., Nov. 29 – Paradox Resources, LLC received final approval to use a $1.1 million deposit from proposed purchaser GNG Partners, LLC as an alternative form of debtor-in-possession financing, according to an order filed Wednesday with the U.S. Bankruptcy Court for the Southern District of Texas.

As a reminder, the company has received court approval to sell its assets to GNG Partners for about $17.5 million.

Paradox said that using the deposit will allow it to sustain the minimum level of operations needed for it to close the sale by Dec. 29.

The facility is set to mature when the sale closes, subject to extension.

The financing will not bear interest or fees.

The company said that absent any commitment from former DIP lender Washington Federal Bank to provide further financing, it must rely on the buyer to step up as the proposed DIP lender and commit to fund the Chapter 11 cases through the closing of the sale.

Paradox Resources is a Houston-based midstream company primarily focused on helium processing and carbon capture, utilization and sequestration. The company filed bankruptcy on May 22 under Chapter 11 case number 23-90558.

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