Anaergia engages Piper Sandler to help with strategic review

By Sarah Lizee

Olympia, Wash., Sept. 14 – Anaergia Inc. has engaged Piper Sandler & Co. to assist the company and its advisers with a strategic review, according to a press release issued Wednesday.

Anaergia, the parent of bankrupt Rialto Bioenergy Facility, LLC, said it will require additional financing to fund its operations and continue to operate as a going concern.

Rialto filed bankruptcy in the face of a shortfall in feedstock supply primarily due to delayed implementation and enforcement of laws requiring organic waste diversion from landfills by Los Angeles as required under the city’s contracts with private waste management companies, as well as under California State law SB1383.

Anaergia said it anticipates that if regulation is enforced, future feedstock for Rialto will increase, and with additional time and relief from debt service and other payments provided under a Chapter 11 restructuring to allow ramp up, the long-term value will be improved for all stakeholders.

Anaergia has ceased control of Rialto from an accounting perspective during the restructuring process and is no longer consolidating Rialto on its consolidated financial statements.

The parent company had been supporting Rialto with loans or equity contributions to address liquidity challenges, but it announced in August that it would no longer be providing financial support to Rialto.

Anaergia said there are no assurances that the evaluation of the potential options will result in the approval or completion of any specific transaction or outcome, adding that it does not intend to comment further unless and if its board of directors approves a specific transaction, concludes its review, or determines that further disclosure is appropriate.

Anaergia is a Burlington, Ont.-based company that was created to turn organic waste into renewable natural gas, fertilizer and water using proprietary technologies. Subsidiary Rialto Bioenergy is based in Carlsbad, Calif., and filed Chapter 11 bankruptcy on May 25 under case number 23-01467.

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