When a forbearance agreement failed, our firm and other advisers to the indenture trustee of $53 million in revenue bonds used to finance a Texas biomass power plant led a marketing effort that resulted in a foreclosure sale of the plant and related assets.
The bondholders had directed the trustee to loan additional funds to the borrower and to enter into a forbearance agreement that would allow for sufficient time to complete construction of the plant and to apply for a cash grant from the U.S. Department of the Treasury under Section 1603 of the American Recovery and Reinvestment Act of 2009.
