Elemental Processing eyes emergency approval to access $500,000 loan

By Caroline Salls

Pittsburgh, May 12 – Elemental Processing, LLC filed an emergency motion Monday with the U.S. Bankruptcy Court for the Eastern District of Kentucky to obtain $500,000 in post-bankruptcy financing to cover administrative and operating expenses.

Transamerican Equipment Co., LLC is the debtor-in-possession financing lender.

“Use of funds is necessary as this court has previously denied use of cash collateral and debtor’s assets are still subject to control of the receiver,” the motion said.

“The emergency post-petition loan is necessary for debtor to fulfill the requirements that may be imposed as part of a court-ordered turnover of assets, above and beyond operating expenses.”

Elemental said the economic terms of the loan would be filed in a supplement to the motion.

A hearing is scheduled for May 15.

Lexington, Ky.-based Elemental Processing provides biomass, modern technology, land management practices and genetics for cannabinoids. The company filed bankruptcy on April 20 under Chapter 11 case number 20-50640.

© 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.