Muni-Backed Rice Fiberboard Project Files for Bankruptcy
- CalPlant ranks among biggest recent muni high-yield defaults
- Senior bondholders commit to restructuring plan and fresh cash
This article is for subscribers only.
CalPlant I LLC, a muni-financed maker of rice-based fiberboard in California, filed for bankruptcy on Tuesday with plans to slash debt and sell itself.
The company cut a restructuring deal with senior bondholders and intends to pursue a sale in bankruptcy court, according to a statement from CalPlant. Certain senior bondholders have also committed to provide some $30 million of fresh financing. The company will keep operating without disruption to stakeholders, including vendors and employees, according to the statement.