Louisiana Pellets seeks approval of $300,000 in interim DIP financing

By Caroline Salls

Pittsburgh, Feb. 19 – Louisiana Pellets, Inc. requested court approval to obtain $300,000 in interim debtor-in-possession financing from German Pellets Holding, USA, Inc., the corporate parent of debtor German Pellets Louisiana, LLC, according to a motion filed Friday with the U.S. Bankruptcy Court for the Western District of Louisiana.

The company said the interim financing will fund operating expenses and other post-bankruptcy costs for an initial 30-day period. The Louisiana Pellets debtors are in discussions with bondholders and other parties concerning a more permanent source of post-bankruptcy financing or cash collateral use, the motion said.

Interest on the interim loan will accrue at 5%.

Louisiana Pellets and German Pellets filed bankruptcy on Feb. 18 under Chapter 11 case number 16-80162.

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