Dakota Plains Holdings Files Chapter 11

Dakota Plains Holdings Inc. and its wholly-owned subsidiaries, Dakota Plains Transloading LLC, Dakota Plains Sand LLC, Dakota Plains Marketing LLC, DPTS Marketing LLC, DPTS Sand LLC and Dakota Petroleum Transport Solutions LLC (together with the company, the debtors), filed a voluntary petition for reorganization under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the District of Minnesota.

The company will continue to operate its business as debtor-in-possession under the jurisdiction of the court and in accordance with the applicable provisions of the Bankruptcy Code and order of the court.

On Jan. 27, 2017, the court approved a stalking horse asset-purchase agreement, dated Dec. 19, 2016, and amended Jan. 26, 2017 agreement, by and between the debtors and BioUrja Trading LLC, to which, subject to the terms and conditions of the asset purchase agreement, the purchaser agreed to purchase substantially all of the assets of the debtors for a purchase price equal to approximately $10.85 million, which would be satisfied in cash and the assumption of certain specified liabilities, including payment of pre-petition cure costs of up to $50,000 required to be paid to Section 365 of the Bankruptcy Code and the remainder to be paid from the purchase price.

The consummation of the transactions contemplated by the asset purchase agreement is subject to certain customary conditions as specified in the asset purchase agreement. The asset purchase agreement also provides for a termination fee payable to the purchasers upon the occurrence of certain events.

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