Ryze Renewables gets approval for DIP financing, bid procedures

By Sarah Lizee

Olympia, Wash., April 11 – Ryze Renewables II, LLC received final approval of an $8 million debtor-in-possession facility via Georgia’s Own Credit Union, according to an order filed Tuesday with the U.S. Bankruptcy Court for the District of Delaware.

Ryze currently has about $186.4 million outstanding on a prepetition secured term loan with Georgia’s Own Credit Union as agent.

Interest on the DIP facility is equal to the Prime rate plus 200 basis points. There is a 1% exit fee.

The facility has a maturity of 130 days but may be terminated earlier if certain events occur.

Also on Tuesday, the company received court approval of bid procedures for its assets, according to a separate order.

The assets include the company’s existing biofuels refinery in Las Vegas. The refinery is about 40% complete and will likely be operational in about 18 to 24 months after the next construction phase starts, the debtor said.

The company also received approval to pick a stalking horse bidder and provide bid protections.

The company has until May 24 to file a stalking horse supplement.

Other key dates under the procedures include a bid deadline of 10 a.m. ET on June 7, an auction on June 12 and a sale hearing on June 20.

The company is hoping to close the sale by July 2.

The Las Vegas-based renewable fuel producer filed bankruptcy on March 9 under Chapter 11 case number 23-10289.

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