- Global Clean Energy Holdings (GCEH, Financial) files for Chapter 11 bankruptcy to restructure its finances.
- GCEH secures $100 million in new financing to support ongoing business operations.
- The restructuring plan aims for a sustainable capital structure by August 2025.
Global Clean Energy Holdings, Inc. (OTCMKTS: GCEH), a company focused on renewable fuels, has initiated a strategic financial restructuring under a Restructuring Support Agreement (RSA) with key stakeholders. This move includes a voluntary Chapter 11 bankruptcy filing in the Southern District of Texas as part of its plan to secure a sustainable capital structure.
As a key component of the restructuring, GCEH has secured $100 million in new debtor-in-possession financing and services from its term loan lenders and CTCI Americas, Inc. This financing will help maintain day-to-day operations and employee payments without interruption during the restructuring process.
The restructuring plan, anticipated for confirmation by August 2025, primarily involves converting term loan lenders and CTCI's claims into equity. The RSA has garnered significant support, with approximately 96% of term loan lenders and Vitol Americas Corp. as the RCF lender backing the plan.
To navigate this complex process, GCEH has appointed Kirkland & Ellis as restructuring counsel, Lazard as investment banker, and Alvarez & Marsal as financial advisor. Despite the challenges ahead, GCEH is committed to continuing its operations and maintaining its workforce as it works toward a successful restructuring outcome.
