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Bakersfield, California -based GCE on Wednesday filed chapter 11 in Texas with a loan of over $ 2 billion. The company said that it intends to cut the debt cut and to implement the reorganization deal designed to resolve disputes with CTCI, which relates to the construction of a new production facility that was commercially operational in December.
The GCE stated that the project, which included converting a crude oil refinery into a renewable fuel refinery, was prone to delay and cost longer than the cost. The company said that its industry has also fought with a change in biofuels, rising costs and environmental tax credit.
Under the proposed reorganization deal, CTCI will receive a combination of new loans and about 56% of GCE’s favorite equity. Court papers say that lenders will also get a combination of loans and equity in restructured business. The reorganization plan should be approved by a bankruptcy judge.
CTCI and GCE lenders have agreed to provide $ 100 million in financing chapter 11 to fund business and reorganization. GCE said that it is planning to emerge from bankruptcy in August.
According to Bloomberg-composed data, the price of GCE shares has been decreasing for months after trading at $ 2.49 in December. On Wednesday, shares were trading less in the form of 10 cents.
The case is the number 25-90113 in the US Insolvency Court in the Global Clean Energy Holdings Inc., the Delaware district.
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