Global Clean Energy Holdings Inc., which owns a renewable diesel plant in Bakersfield, California, announced on April 16 that it has entered into a restructuring support agreement (RSA) with its principal creditor, Vitol Americas Corp. Vitol, as lender on the revolving line of credit and representative of the interim term loan group, controls approximately 96% of the term loan. and representative of the interim term loan group, controls approximately 96% of the term loan. The parties to the agreement also include CTCI Americas Inc.
which has formally filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of Texas in furtherance of the reorganization transaction. Noah Verleun, President and Chief Executive Officer, thanked all parties for their continued support and said the partnership reflects confidence in its “farm-to-fuel” business model.
The company has filed a first-day motion to maintain day-to-day operations, including the payment of employee wages and benefits. To fund the restructuring, the company’s term lenders and CTCI will provide $100 million in DIP financing, which remains subject to certain conditions. The company expects to complete the confirmation process for its plan of reorganization in August.
