Aventine receives DIP funding

By Erin Voegele | April 14, 2009
Web exclusive posted April 17, 2009, at 2:00 p.m. CST

Aventine Renewable Energy Holdings Inc. and its subsidiaries filed voluntary petitions under Chapter 11 of the U.S. Bankruptcy Code in the District of Delaware on April 7. The company and certain holders of its 10 percent senior unsecured notes have agreed to a first priority secured debtor-in-possession (DIP) term loan totaling $30 million that will enable the company to continue to satisfy customary obligations associated with its ongoing operations. The DIP loan provided by certain bondholders will provide the company with new liquidity permitting it to maintain normal operations and allow the company and its creditors to jointly plan for the future.

On April 16, Aventine announced that the Bankruptcy Court in the District of Delaware had given interim approval of its DIP financing package. This interim approval will allow Aventine immediate access to the first $15 million of its DIP financing. The second $15 million will become available once the Bankruptcy Court approves a final order. A hearing to consider the balance of the $30 million DIP financing is currently scheduled for May 5.

"Receiving interim approval of the DIP financing greatly enhances our liquidity position at the outset of this process," said Ron Miller, Aventine's president and chief executive officer. "The additional reassurance it provides to our suppliers and employees is essential to carrying on our business as usual. We can now move forward in serving the needs of our customers."

For more information on Aventine's bankruptcy filing read "Aventine files for Chapter 11 bankruptcy."