CalPlant seeks approval to issue supplemental $15 million DIP bond

By Sarah Lizee

Olympia, Wash., March 16 – CalPlant I, LLC and CalPlant I Holdco, LLC is seeking court approval to issue a supplemental $15 million debtor-in-possession bond, according to a motion filed Tuesday with the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, the debtors had received court approval to access $30.1 million in DIP financing in the form of new taxable bonds due October 2022 from some of its senior bondholders.

The debtors said the original budget anticipated enough funding for the debtors to operate through early March. CalPlant said it has been able to extend the timeline by several additional weeks through cost savings associated with limited operations and the delayed incurrence of estate professionals’ fees relating to the sale of the business and plan confirmation.

However, the debtors said they will require access to additional working capital starting as soon as next month.

The debtors expect the incremental financing to last until late September. During that time, they plan to fine-tune the plant, operate the business and market the company.

BOKF, NA is the DIP trustee.

Interest is 9˝%, payable monthly. The default rate would be an incremental 2%.

Willows, Calif.-based CalPlant manufactures sustainably sourced building products. The company filed Chapter 11 bankruptcy on Oct. 5 under case number 21-11302.

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