Autogas technology provider CleanFUEL USA said April 5 it filed a voluntary petition for relief under Chapter 11 of the U.S. Bankruptcy Code in the Bankruptcy Court for the Western District of Texas as it seeks the restructure of its debts.
The company estimated it had between 200 and 999 creditors, and assets and liabilities of between $10 million and $50 million, each, according to the petition filed with the court.
Also, the Georgetown, Texas-based company filed a motion to pay pre-petition claims of “certain critical vendors.” A hearing on the motion was set for April 18, 2016, according to court documents.
In conjunction with the Chapter 11 filing, the company said it expects to obtain debtor-in-possession financing to allow for an orderly reorganization. Subject to court approval, the DIP financing, combined with the company’s cash from operations, is expected to provide sufficient liquidity to allow continued operations during the Chapter 11 process, it said.
“We are taking this action so we can continue to strengthen and adapt our business to meet the changing dynamics in the alternative fuel industry,” Curtis Donaldson, founder and president of CleanFUEL USA, said in a statement. “We intend to use the Chapter 11 process to reorganize our financial and operational structure, and position the company for the future.”
During the restructuring process, CleanFUEL USA said it plans to continue to operate business as usual, fulfilling customer orders, paying vendors and offering its same level of service as it has since 1993.