Fulcrum BioEnergy Creditors Push Back on Sale, Loan Proposals

Bankrupt Fulcrum BioEnergy Inc.'s unsecured creditors have asked a court to hold off on approving the clean-fuels company’s requests for a compressed timeline to sell its assets and obtain financing from its pre-bankruptcy lenders.

Fulcrum’s proposed bidding procedures would sell its Sierra biofuels plant, a water treatment facility, and valuable power and water contracts. The proposals should be rejected because the sale timeline isn’t adequte to market the assets, which will chill bidding and stifle competition, a group of unsecured creditors said in an objection Wednesday at the US Bankruptcy Court for the District of Delaware.

Fulcrum and its affiliates ...