Ryze Renewables receives interim approval of disclosure statement

By Sarah Lizee

Olympia, Wash., Nov. 29 – Ryze Renewables II, LLC received interim approval of the disclosure statement for its Chapter 11 plan, according to an order filed Tuesday with the U.S. Bankruptcy Court for the District of Delaware.

The combined hearing on final approval of the disclosure statement and confirmation of the plan is scheduled for Jan. 8.

Under the plan, other priority claims and other secured claims will receive a full recovery.

Holders of prepetition loan facility claims, which are estimated at about $181.39 million in total, are expected to receive a recovery of 11%. Holders will receive an initial sale proceeds distribution on the effective date, and any litigation proceeds and winddown reversionary assets after the effective date.

As part of a global settlement, all MMC, Inc. sale proceeds claims will be canceled without distribution.

General unsecured claims will be canceled with no recovery. The estimated amount of claims in this class is $7.93 million.

Intercompany claims, section 510(b) claims and interests will be canceled with no distribution.

Intercompany interests will be either reinstated or set off, settled, distributed, contributed, canceled or released.

As previously reported, the company sold its assets to Edgewood Renewables, LLC for $36.5 million in July. There was a dispute between the debtors and MMC over some of the sale proceeds, but those issues were resolved through a settlement.

The Las Vegas-based renewable fuel producer filed bankruptcy on March 9, 2023 under Chapter 11 case number 23-10289.

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