Global Clean Energy files Chapter 11 bankruptcy
- Global Clean Energy Holdings Inc.
- Apr 16, 2025
- 2 min read
Global Clean Energy Holdings Inc., which owns a renewable diesel facility in Bakersfield, California, announced April 16 that it has entered into a restructuring-support agreement (RSA) with Vitol Americas Corp. as the revolving credit-facility (RCF) lender, an ad-hoc group of term-loan lenders that holds approximately 96 percent of the term loans, and CTCI Americas Inc.
To facilitate the transactions contemplated under the RSA, the company commenced Chapter 11 cases in U.S. Bankruptcy Court for the Southern District of Texas.
“As we enter this next phase of our restructuring process, we are appreciative of the continued support from our existing stakeholders,” said Noah Verleun, the president and CEO of Global Clean Energy.
“Their confidence in our upstream and downstream businesses, as demonstrated by this ongoing collaboration, reinforces the opportunity Global Clean Energy has in the renewable fuels market with our ‘farm-to-fuel’ business model,” Verleun added. “I want to thank our employees for continuing to be fully engaged as we go through this process and prioritizing safety above all else. We feel confident this decision provides us the best pathway toward future success.”
The company has filed customary first-day motions and plans to operate its businesses in the ordinary course, including requesting approval to continue paying employees and funding benefit programs as it pursues the holistic-restructuring transactions set forth in the RSA.
To fund this process and continue operating, the company’s term-loan lenders and CTCI have combined to provide an additional $100 million in new money debtor‑in‑possession financing and services, subject to certain terms and the satisfaction of certain conditions.
The company has also filed a Chapter 11 plan and anticipates confirming its Chapter 11 plan by August.
Kirkland & Ellis is serving as restructuring counsel, Lazard as the investment banker and Alvarez & Marsal as the financial advisor to the company.
