MIAMI, April 13, 2016 /PRNewswire/ -- BioNitrogen and the City of Perry in Taylor County, Florida are pleased to announce an agreement in principle which will address the City of Perry's unsecured claim against BioNitrogen (in its Chapter 11 restructuring process) and at the same time give BioNitrogen a place to build its first facility, with the full support of the municipality and the state. On emergence from Chapter 11, BioNitrogen will immediately move to complete the necessary engineering design work specific to a planned location in Taylor County, and secure the necessary financing to build the facility.
According to Graham Copley, CEO of BioNitrogen, "BioNitrogen's move to seek bankruptcy protection was due to poor financing decisions made in the past, and never about the validity and value of the process and its underlying technology. The original project to build in the City of Perry was sound and we are delighted that the City and the community continue to support us with this agreement. The location of the facility could not be better placed logistically, and the region is rich in biomass feedstock, contributing to the financial success of the plan. Having the location and the plan to build what would be our first showcase plant, facilitates conversations with possible strategic and financial partners."
Bob Brown, City Manager for Perry, commented: "We are pleased to have this agreement with BioNitrogen and we look forward to their successful restructuring through the Chapter 11 process and their immediate focus on Taylor County as a first place to build. This project will create jobs and a broader economic benefit for the county and the City. The City of Perry and the community is committed to providing whatever logistical and technical assistance we can to BioNitrogen to bring this project to life."
Dustin Hinkel, Taylor County Administrator, said: "We are happy to see that BioNitrogen and the City of Perry have reached an agreement that will bring many high-paying jobs to the county and restore the community's investment into this project. This agreement shows that BioNitrogen is emerging from its restructuring as a committed partner to our community. I look forward to working with them to bring more jobs and economic activity to our County."
Scott Frederick, Director of the Taylor County Development Authority said that "the TCDA Board earlier approved the issuance of a $300 million tax free bond for this project. We are excited that this agreement can put BioNitrogen on a path to utilizing the bond toward the construction of its first plant in Taylor County, Florida."
BioNitrogen's attorney, Jacqueline Calderin of Ehrenstein Charbonneau Calderin and City of Perry's attorney, Scott Williams of Rumberger, Kirk & Cardwell have worked extensively on the preparation of a term sheet that memorializes the agreement. The parties will seek approval of the agreement from the Bankruptcy Court in the coming weeks.
About BioNitrogen Holdings Corp.
BioNitrogen Holdings Corp. (OTC PINK: BIONQ) 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.