Filing Alert: Global Clean Energy Chapter 11
Global Clean Energy Files Chapter 11 in Southern District of Texas
Global Clean Energy Holdings, Inc. and its debtor affiliates⁽¹⁾, a Bakersfield, CA-based vertically integrated renewable energy company focused on the development and production of ultra‑low carbon fuels from proprietary non‑food oilseed feedstocks such as Camelina, filed for Chapter 11 protection on Apr. 16 in the U.S. Bankruptcy Court for the Southern District of Texas.
The filing follows significant delays and cost overruns related to the construction of its core Bakersfield Facility and ensuing disputes with EPC contractor CTCI Americas, Inc. ("CTCI"), which asserted approximately $949 million in claims and filed a mechanic’s lien.
Prepetition restructuring efforts included marketing processes led by Lazard targeting investment in its Upstream Business (starting July 2024) and a sale of the company (starting December 2024), which did not yield actionable bids by the February 2025 deadline.
Subsequently, the debtors negotiated a restructuring support agreement (RSA) with key consenting stakeholders including an ad hoc group representing 96% of its approximately $1.1 billion prepetition term loans, CTCI, and prepetition RCF lender Vitol Americas Corp ("Vitol"). The RSA underpins a proposed plan contemplating $2.1 billion in various take-back debt facilities, a settlement resolving the CTCI dispute involving debt and 55.6% of new preferred equity, and the conversion of prepetition term loan claims into debt, 44.4% of new preferred equity, and 100% of new common stock.
To fund the cases toward a targeted effective date within 120 days, the company is seeking approval of $250 million in multi-tranche, superpriority, priming DIP financing, comprising a $100 million RCF from Vitol, a $75 million term loan from prepetition term lenders, and a $75 million CTCI payment facility.
The company reports $1.6 billion in both assets and liabilities. The filing indicates that no funds will be available for distribution to unsecured creditors after administrative expenses are paid. The case number is 25-90113.
⁽¹⁾ For a complete list of debtor entities, see the Chapter 11 Debtors table.
Proposed Timeline
Initial Budget
Chapter 11 Debtors
Top Unsecured Claims
Key Parties
Local Bankruptcy Counsel:
- Jason L. Boland
- Norton Rose Fulbright US LLP
- Email: jason.boland@nortonrosefulbright.com
General Bankruptcy Counsel:
- Kirkland & Ellis LLP and Kirkland & Ellis International LLP
Investment Banker:
- Lazard Frères & Co. LLC
Financial Advisor:
- Alvarez & Marsal North America, LLC
Appraisal Advisor:
- Hilco Valuation Services, LLC
Signatories:
- Noah Verleun – Chief Executive Officer
Claims Agent:
Equity Security Holders:
- Richard Palmer – 24.0% Equity Interest
- Michael Zilkha – 8.6% Equity Interest
- Pacific Sequoia Holdings LLC – 8.0% Equity Interest
Bondoro Insights is continuing to monitor this case and will provide further coverage as appropriate.
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