GreenHunter Biofuels amends $37.6m credit agreement with WestLB for a second time

18 December 2009

Biodiesel producer Greenhunter Biofuels has executed a definitive amendment to its existing credit agreement with lender WestLB regarding a $28.6m term loan and a $9m working capital credit loan.

The amendment is the second definitive amendment to the company’s existing credit agreement with WestLB and the loan facilities are secured predominantly by GreenHunter’s existing biodiesel refinery assets located in Houston, Texas.

As part of the amendment, WestLB has agreed to waive any claims of events of default until March 2010. GreenHunter has reduced the company’s total debt due to WestLB by over $5.8m during calendar year 2009.

Gary Evans, chairman and CEO of GreenHunter Energy, said, ‘By obtaining a second amendment to our existing credit agreement with WestLB, we will have more time to either seek a strategic partner, refinance our current indebtedness with the lender, complete a partial or total sale of the associated assets, or obtain governmental assistance that would allow this strategic facility to be re-commissioned. All US biodiesel producers are presently sitting on pins and needles as we anxiously await formal extension of the existing federal tax credit that expires in 14 days on 31 December 2009.

‘It is absolutely necessary that our politicians approve this federal subsidy in order for our industry to have any longevity. Biodiesel producers are the only renewable fuel in the US that did not receive government approval for multi-year subsidy extensions earlier in 2009 similar to what was received for the solar, wind, biomass, geothermal and ethanol industries,’ Evans added.

A wholly-owned subsidiary of GreenHunter Energy, GreenHunter Biofuels refines and produces biodiesel. Headquartered in Grapevine, Texas, GreenHunter Energy is focused on the wind, hydro, geothermal, solar, biofuels, and biomass sector, with assets consist of leases property for future development of wind energy projects located in Montana, California, Texas, Wyoming and The Peoples Republic of China, with an option to lease acreage associated with a transmission facility in Port Sutton, Florida. The company’s material assets include a biodiesel refinery in Houston, Texas, a biomass-fired power plant located in Brawley, California.

Copyright © 2009 NewNet

Tags: biodiesel, biofuel, biomass

This story was published on Friday, December 18th, 2009 at 1:07 pm and is filed under North America, biomass/biofuel, deals. You can follow any responses to article entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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