Dakota Plains Holdings and six affiliated Debtors filed for Chapter 11 protection with the U.S. Bankruptcy Court in the District of Minnesota, lead case number 16-43711. The Company, which transloads crude oil and related products, is represented by Michael McGrath of Ravich, Meyer, Kirkman, McGrath, Nauman & Tansey.
The Company states that this filing was made in order to “preserve value and accommodate an eventual going-concern sale of Dakota Plains’ business operations.”
Dakota Plains Holdings also announced that it filed a motion for Court approval of the sale of substantially all of the Company’s assets to BioUrja Trading for a purchase price of $8.55 million. BioUrja Trading is the stalking horse bidder in a sale process under Section 363 of the Bankruptcy Code, and the asset purchase agreement will require Court approval and be subject to higher or better offers. Dakota Plains Holdings is seeking and expects to obtain up to $2 million in post-petition debtor in possession financing from its senior secured lender, SunTrust Bank, which, subject to Court approval, will provide the Company with liquidity to maintain its operations in the ordinary course of business during the Chapter 11 process. SunTrust Bank supports the sale process.
Gabe Claypool, president, C.E.O. and C.O.O. of Dakota Plains Holdings, comments, “We believe the Chapter 11 process will enable the terminal to continue operating and successfully restructure our balance sheet to position us for the future.”
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