MIAMI, May 27, 2016 /PRNewswire/ -- BioNitrogen is pleased to announce a number of milestone events in its proposed path to restructure and reorganize under Chapter 11.
On May 24, the Federal Bankruptcy Court in Miami, FL granted BioNitrogen the exclusive right to propose a plan of restructuring for a further 90 days. This agreement was supported by both the company's largest secured creditor and largest unsecured creditor.
Also on May 24, BioNitrogen received a letter of proposed partnership (contingent on a successful reorganization) from one of the leading global industrial gas companies. This letter has been made available to all potential financial partners in discussion with BioNitrogen under an NDA. The Industrial Gas Company is willing to discuss its reasons for the partnership and why it supports BioN with any potential investor.
Potential investors have also been supplied with complete short term and longer term financial expectations for the project in Taylor County and the company as a whole going forward. BioN believes that it can produce competitively priced Urea in the US, even in the depressed US natural gas market that we face today.
These agreements follow the important agreements struck with the City of Perry, FL last month.
BioN now has:
- A place to build its first facility - Taylor County, Florida
- County and state backing for financing.
- County backing for land, transportation and utility agreements
- A "World Class" strategic partner with interest in helping with engineering oversight as well as proving equipment, and taking ownership of the carbon dioxide by-product.
Graham Copley, Chairman and CEO of BioNitrogen Holdings, said, "This has been another important week for BioNitrogen as we look to align ourselves with the right investor(s) to build the first of these unique and very valuable facilities. Our strategic partner has decades of engineering and design experience and has spent significant time and resource vetting the technology. We have a couple of straightforward design changes to make to the process and then adjust for what will be a new property in Taylor County, but we would expect to be ready to start construction within 6 months from a successful Chapter 11 reorganization. I continue to believe that BioNitrogen represents an investment opportunity with an extraordinarily positive asymmetric risk/reward profile."
Brent Williams of Teneo Capital added, "A critical component of BioNitrogen's restructuring plan has been achieved with the court approval of the City of Perry, Florida Settlement. The Settlement provides a specific geographic area for the construction of the Urea Facility, and a mechanism for a bond allocation which would fund upwards of 80% of the cost of construction. This achievement, coupled with the strategic partnership with an international gas company, are key components towards a successful emergence from Chapter 11. We are actively working with potential financial sponsors and encourage any other financial parties with an interest in this endeavor to contact Graham or me."
Chairman and CEO, BioNitrogen Holdings Corp
O: (203) 901-1629
M: (203) 247-1291
Senior Managing Director, Teneo Capital
O: (646) 561-3541
M: (201) 725-8487
About BioNitrogen Holdings Corp.
BioNitrogen Holdings Corp. (OTC PINK: BION) is a cleantech company that utilizes patented technology to build environmentally friendly plants that convert biomass into urea fertilizer. Additional information can be found at www.BioNitrogen.com.
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SOURCE BioNitrogen Holdings Corp.