Global Clean Energy Gets Debt-Cutting Bankruptcy Plan Approved

Renewable fuels company Global Clean Energy Holdings Inc. won court approval to reorganize in bankruptcy by converting secured debt to equity, overcoming a federal government objection over liability releases.

The publicly traded fuels producer will emerge from Chapter 11 with $70 million in post-bankruptcy financing through a deal that hands preferred equity to a group of lenders and engineering firm CTCI Americas Inc.

Unsecured creditors agreed to a deal establishing a $10.5 million cash payment pool.

Approving the restructuring plan at a hearing on Monday, Judge Alfredo Perez of the US Bankruptcy Court for the Southern District of Texas overruled ...