Paradox Resources has defaulted on DIP loan again, lender says

By Sarah Lizee

Olympia, Wash., Oct. 5 – Paradox Resources, LLC’s debtor-in-possession lender, Washington Federal Bank, said the company has defaulted again on its DIP loan, according to a letter filed Wednesday with the U.S. Bankruptcy Court for the Southern District of Texas.

WaFd told the court that events of default had occurred in August and September as well. The lender said those events of default are continuing, and that another has occurred since then.

The lender said the debtors have failed to satisfy the Sept. 28 extended bid deadline to obtain a qualified bid within two business days following that date.

The debtors also canceled the auction set for the extended auction deadline of Oct. 2.

The lender said it has declared a termination of any further DIP loan commitment.

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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