| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers D > Headlines for Dakota Plains Holdings, Inc. > News item |
Dakota Plains requests approval of sale procedures and DIP financing
By Caroline Salls
Pittsburgh, Dec. 22 – Dakota Plains Holdings, Inc. requested court approval of the bid procedures for the proposed $8.55 million sale of substantially all of its assets, as well as approval to obtain $2 million in debtor-in-possession financing, according to motions filed Dec. 21 with the U.S. Bankruptcy Court for the District of Minnesota.
BioUrja Trading, LLC is the stalking horse bidder for the assets.
If BioUrja is not ultimately the high bidder, Dakota Plains will pay it a 3.5% breakup fee.
Competing bids are due by 12:59 a.m. ET on Jan. 20 and must at least equal the amount of the stalking horse bid, plus the breakup fee and a $100,000 initial minimum overbid.
Subsequent bids must be made in minimum increments of $50,000.
An auction will be held on Jan. 23, if necessary, and the company is asking the court to hold the sale hearing on or before Jan. 27.
SunTrust Bank is the administrative agent for the DIP financing.
The DIP facility will mature on the earliest of 90 days from the closing date, the closing of the sale transaction, the effective date of a Chapter 11 plan and acceleration of the loan obligations.
Interest will accrue at a rate of 8%.
The bid procedures and interim DIP financing hearings are scheduled for Dec. 29.
In addition, according to an 8-K filed with the Securities and Exchange Commission, Dakota Plains’ Chapter 11 filing constituted an event of default on its revolving credit and term loan agreement, member interest purchase agreement and two guaranty and security agreements.
However, efforts to enforce default-related rights are automatically stayed as a result of the bankruptcy filing.
Dakota Plains, a midstream energy company based in Wayzata, Minn., filed for bankruptcy on Dec. 20 under Chapter 11 case number 16-43711.
© 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.