Raser Wins $12.5M DIP Loan, Drops Auction Plan

Law360, Wilmington (June 1, 2011, 7:08 PM EDT) -- Geothermal energy company Raser Technologies Inc. won a Delaware bankruptcy court’s blessing Wednesday for a $12.5 million debtor-in- possession loan after appeasing wary creditors by scrapping a plan to auction off ownership of the reorganized company.

U.S. Bankruptcy Judge Kevin J. Carey signed off on the loan, saying the financing would help preserve Raser’s assets and give it time to go through a proper Chapter 11 reorganization process.

“Which I think, under these circumstances, is better than the original auction process that was proposed,” the judge...
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