The Principals of ETA participated in representing secured creditors in the bankruptcy of two wood pellet mills developed and built by German Pellets, GmBH out of Wismar, Germany. The facilities, located in Woodville, Texas, and Urania, Louisiana, utilize shared port facilities at Port Arthur, Texas. Each facility is capable of producing 500,000 tonnes per year of dry wood pellets produced from sustainable southern yellow pine in Texas and Louisiana.
The pellets were being used as a substitute for coal in electric generating stations owned and operated by Drax in the United Kingdom. The pellets were transported by truck to Port Arthur, Texas, stored in five 15,000 tonne silos, and loaded out to cargo ships for transport to the UK.
The creditors provided debtor in possession (DIP) financing to support capital projects and operations during the restructuring for financing and sale. ETA Principals participated and provided advice with respect to the restart of the Louisiana project, the permitting and optimization of the Texas project, and the rebuild and restart of the port facility after a catastrophic fire in the silos. Following the restructuring, the projects were successfully sold, and are currently still in operation.