Rentech, Inc. filed for Chapter 11 bankruptcy protection in Delaware today. It plans to sell its Fulghum Fibres and New England Wood Pellet subsidiaries (which did not file). And it is winding-down its remaining operations.
The Company’s Operations
Rentech is a Los Angeles-based company that processes wood fibre into wood chips and pellets. Its subsidiary, Fulghum Fibres is the largest independent processor of wood fibre. And its New England Wood Pellet subsidiary is one of the largest producers of bagged pellets for the U.S. heating market. Customers include Home Depot, Lowe’s, and Tractor Supply. Rentech also owns two wood pellet facilities in Eastern Canada. With exclusive priority access at the Port of Quebec, the facilities handle, load, and store over 1 million tons of pellets annually.
The Pending Sales
Shortly before filing, the company entered into three asset purchase agreements:
- An affiliate of Scott David Chip has offered to buy Rentech’s US-based Fulghum Fibres business.
- Lignetics of New England has offered to buy Rentech’s New England Wood Pellet business.
- And True North Timber has offered to buy the Atikokan Facility in Canada.
However, the Wawa Facility in Ontario remains idle. Its owner has applied to the Ontario Superior Court of Justice for the appointment of a receiver and manager. Ultimately, the receiver will likely sell or liquidate the Wawa Facility as well.
The case number is 17-12958 (CSS). And if you would like more information, the claim agent’s website is here.