| 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 involuntary Chapter 7 bankruptcy case dismissed
By Caroline Salls
Pittsburgh, Dec. 11 - Earth Biofuels, Inc.'s involuntary Chapter 7 bankruptcy case was dismissed Monday by the U.S. Bankruptcy Court for the District of Delaware.
As previously reported, the case was filed on July 11 by noteholders Castlerigg Master Investments Ltd., Radcliffe SPC Ltd., Portside Growth and Opportunity Fund, Cornell Capital Partners LP and Evolution Master Fund Ltd.
The petitioning creditors agreed to dismiss the involuntary case against Earth Biofuels in November 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.
The complete restructuring agreement is expected to 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.
According to a company news release, Earth Biofuels' restructuring and growth plan is focused on the expansion of its liquefied natural gas business, its biodiesel production and marketing operations, the development of cellulosic ethanol production technologies and the development of biofuels retail marketing and distribution.
Earth Biofuels' Chapter 7 case number was 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.