Ryze Renewables files for bankruptcy
Ryze Renewables II LLC and its 100 percent owned Ryze Renewables Las Vegas LLC filed for Chapter 11 bankruptcy March 9, according to court documents reviewed by Biobased Diesel Daily.
Ryze had been developing two renewable diesel projects in Nevada, one in Reno and the other in Las Vegas, until the company exited the Reno project.
The Las Vegas renewable diesel project was being developed at the site of the former Biodiesel of Las Vegas plant.
The top two creditors that hold unsecured claims against Ryze are Georgia’s Own Credit Union and Biodiesel of Las Vegas.
Ryze owes Georgia’s Own Credit Union $3.12 million for unsecured fees and expenses under a prepetition term-loan agreement and $2.25 million to Biodiesel of Las Vegas.
Ryze is disputing another $693,000 owed to Georgia’s Own Credit Union for a USDA loan guarantee fee.
Another $140,265 is owed to Starr Surplus Lines Insurance Co.
The company owes Johnson, Kendall and Johnson Inc. $47,350 in insurance broker fees.
It also owes Clark County and the city of North Las Vegas more than $71,000 for taxes and fees.
In August 2018, Ryze entered into a long-term feedstock-supply and product-offtake agreement with Phillips 66.
The Reno facility has made headlines several times since Ryze exited the project.
Most recently, this January, Camber Energy Inc. entered into an agreement with RESC Renewables Holdings LLC to purchase the 43 million gallon per year project.
According to an 8-K filing with the U.S. Securities and Exchange Commission, the purchase price was anticipated to be $750 million, less the $251 million in outstanding liabilities and indebtedness of the acquired companies.
In late 2021, Viking Energy Group Inc. agreed to purchase the project, which never materialized. Camber Energy holds a majority ownership stake in Viking Energy.
In spring 2022, the project entered into a ground sale and leaseback arrangement with Twain Financial Partners in order to secure the capital needed to complete construction.
Most recently, in August, officials inaugurated the facility, which, at the time, was expected to begin producing in early 2023.