Canadian anaerobic digestion (AD) specialist Anaergia Inc (TSX:ANRG) mentioned on Thursday that the majority-owned unit working the Rialto waste-to-energy (WtE) plant in California has made a Chapter 11 chapter safety submitting after failing to safe sufficient income to cowl prices and debt service attributable to a feedstock deficit.
The Rialto Bioenergy Facility (RBF) is described as the most important natural waste-to-energy plant in North America. It has the capability to course of as much as 1,000 tonnes per day of natural waste and to transform it into as much as 1 million MMBtu per 12 months of carbon-negative renewable pure gasoline (RNG).
The Chapter 11 restructuring course of will give RBF extra time and reduction from debt service and different funds whereas it awaits the resumption of regular feedstock provide, Anaergia mentioned in a press launch on Thursday. It blamed the dearth of feedstock on a delay within the implementation and enforcement of legal guidelines requiring natural waste diversion from landfills by the Metropolis of Los Angeles. The now-adopted implementation ordinance will probably be totally enforceable in January 2024.
As a part of the Chapter 11 course of, RBF plans to enter right into a debtor-in-possession (DIP) financing facility with a lender to ensure the continued operation of its enterprise.
Anaergia, which owns 51% of RBF via one in every of its different subsidiaries, mentioned it expects the RNG plant to retain its long-term worth for traders throughout the course of.
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