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Abengoa Bioenergy US seeks court approval of $41 million DIP facility
By Caroline Salls
Pittsburgh, Feb. 25 – Abengoa Bioenergy US Holding, LLC asked court approval to obtain $41 million of debtor-in-possession financing from Sandton Capital Partners, LP affiliate the Kimberley Fund, LP, according to a motion filed Wednesday with the U.S. Bankruptcy Court for the Eastern District of Missouri.
The DIP loan will mature on the earliest of the effective date of the plan of reorganization or closing on a sale of substantially all of the company’s assets, the effective date of the closing of the sale of Abengoa’s Ravenna plant and 180 days following entry of the interim DIP financing order.
Cash interest will accrue at 14%. The company may pay the interest in kind, and interest paid in kind will not be counted toward draw limits.
The company is seeking interim access to $8 million of the DIP financing.
According to the motion, up to $3.8 million of the DIP loan proceeds may be used, together with excess cash revenue from Ravenna facility operations, to restart Abengoa’s York facility.
Abengoa Bioenergy, a Chesterfield, Mo.-based ethanol producer, filed bankruptcy on Feb. 24. The Chapter 11 case number is 16-41161.
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