Paradox seeks OK of protective advance loan from Washington Federal

By Sarah Lizee

Olympia, Wash., June 14 – Paradox Resources, LLC is seeking approval of a protective advance loan from prepetition lender Washington Federal Bank, NA and continued use of cash collateral, according to a motion filed Wednesday with the U.S. Bankruptcy Court for the Southern District of Texas.

The company said it is continuing to make good faith progress toward obtaining post-petition financing, but the court’s utilities order required the debtors to make adequate assurance deposits into an account by Wednesday.

The company said that, given its current cash position, there is an emergency need to borrow enough funds to make the deposit.

Washington Federal has agreed to make the protective advance in the amount of $235,970, with no interest or fees.

The lender has also agreed to the continued use of cash collateral.

Paradox Resources is a Houston-based midstream company primarily focused on helium processing and carbon capture, utilization and sequestration. The company filed bankruptcy on May 22 under Chapter 11 case number 23-90558.

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