BioNitrogen Holdings Emergency Financing Approved
The U.S. Bankruptcy Court approved, on an interim basis, BioNitrogen Holdings' emergency motion to (i) authorize BioNitrogen Plant FL Taylor to provide post-petition financing to BioNitrogen Holdings and (ii) granting BioNitrogen Plant FL Taylor a super-priority administrative expense claim to the date(s) of borrowing. As previously reported, "Through this Motion, the Debtors request entry of an order (i) authorizing BION to borrow up to $126,524.84 from BION Taylor's DIP account for the purpose of funding the Debtors' operations and emergency expenditures until such time as the Debtors obtain an alternative source of financing; (ii) granting BION Taylor a super-priority lien secured by all of its affiliates' pre-petition assets, subordinated only to the lien of Annon, and an administrative expense claim under section 503(b)(1) for any funds advanced nunc pro tunc to the date of borrowing....Absent this emergency funding and use of available cash, the Debtors will suffer irreparable harm, as BION stands to lose its highly necessary employee, facility, insurance coverage and potentially, extremely valuable Technology patents. In exchange, the Debtors propose that BION Taylor receive a superpriority lien under section 364(c)(1), subordinate only to Annon, and a priority administrative expense claim Thus, under the circumstances, the Debtors believe that the need for the proposed emergency financing meets the standards required by Rule". The Court scheduled a January 21, 2016 final hearing on the motion.
