| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers E > Headlines for Earth Biofuels, Inc. > News item |
Earth Biofuels, petitioning creditors plan out-of-court restructuring
By Caroline Salls
Pittsburgh, Nov. 21 - Earth Biofuels, Inc. and the group of noteholders who filed an involuntary Chapter 7 case against the company in July expect to complete their out-of-court restructuring plan within 120 days, according to an 8-K filed with the Securities and Exchange Commission.
As previously reported, petitioning creditors Castlerigg Master Investments Ltd., Radcliffe SPC Ltd., Portside Growth and Opportunity Fund, Cornell Capital Partners LP and Evolution Master Fund Ltd. agreed to dismiss the involuntary case against Earth Biofuels as part of an interim restructuring agreement.
Under the interim restructuring agreement, the participating noteholders have agreed to forbear from exercising their rights against the company, and Castlerigg has agreed to purchase the claims of Portside, Evolution and three other noteholders.
Also under the interim restructuring, collateral documents are being held in escrow until the court rules on the case dismissal motion. The interim restructuring and escrow agreement are subject to the case being dismissed by Dec. 21.
A hearing on the case dismissal is scheduled for Dec. 10.
According to the 8-K, the complete restructuring agreement will incorporate the interim agreement, releases by the company and the noteholders, a confession of judgment by the company in favor of each participating noteholder, a guaranty by Earth Biofuels' subsidiaries for the prompt payment of the total outstanding amount due to the noteholders under the interim restructuring agreement upon the occurrence of specified trigger events and an escrow agreement.
The involuntary bankruptcy petition was filed on July 10 in the U.S. Bankruptcy Court for the District of Delaware. Earth Biofuels' Chapter 7 case number is 07-10928.
© 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.