Abengoa Bioenergy US Holdings filed with the U.S. Bankruptcy Court a motion to extend the exclusive period during which the Company can file a Chapter 11 plan and solicit acceptances thereof through and including January 19, 2017 and March 20, 2017, respectively.
The motion explains, “Since the commencement of these chapter 11 cases, the Debtors and their professionals have undertaken substantial efforts to accomplish three major tasks: (i) assuring smooth transition to operating as debtors in possession in chapter 11 cases; (ii) restarting two ethanol production facilities that had been shuttered in late 2015 due to the lack of funding; and (iii) consummating a sale process for substantially all of the Debtors’ assets.”
The motion continues, “To that end, the Debtors worked diligently with their advisors to obtain DIP financing, and to develop a budget that would enable to the Debtors to accomplish their near-term operational goals, instill confidence in their suppliers, customers, and employees, and facilitate the marketing process in order to maximize the value of the Debtors’ assets….The Debtors are in the process of completing the sale of these assets. With the sale of the assets almost complete, the Debtors, together with their advisors, are currently focused on developing a chapter 11 plan. The Debtors are also working with the Committee’s advisors towards consensually resolving any issues the Committee may have with the plan, which will save estate resources and wind down these chapter 11 cases in a more timely fashion. An extension of the Exclusivity Periods will allow the Debtors to develop and take all the necessary steps to implement the strategy that will result in the best outcome for all stakeholders of the Debtors.”
The Court scheduled an October 19, 2016 hearing, with objections due by October 12, 2016. Read more oil & gas bankruptcy news.