Alliance BioEnergy Plus Inc. announces the U.S. Bankruptcy Court for the Southern District of Florida has approved its Chapter 11 Disclosure Statement.
A hearing is set for September 12 to confirm the Chapter 11 Plan, and Alliance has already placed in an escrow account all of the funds necessary to pay its creditors all payments required to confirm the Plan.
The Plan will not impair any creditor class; the management team is proud to have kept all shareholders' equity and warrants whole.
Alliance has developed a new and improved technology system that converts any cellulosic material -- grasses, wood, paper, farm waste, yard waste, forestry products, nut shells, and the cellulosic portion of municipal solid waste -- into biofuels quicker, more consistently, and more energy efficient than the first generation process. The new system, the CTS 2.0 process, where CTS stands for Cellulose-to-Sugar, takes sugar and converts it into ethanol via a standard process, and then the ethanol into other biofuels.
CTS 2.0 is an environmentally friendly process that recycles water and catalysts used in the process, uses no toxic chemicals, produces 100% renewable fuel, and has a near zero carbon footprint.
"The significant commercial opportunity for the new CTS 2.0 technology made it worthwhile to restructure the Company, establish a much healthier balance sheet, and install a management team with proven track record in bringing technologies to market," says Ben Slager, Alliance CEO. "There is enough feedstock in the United States to replace close to half the fossil fuels presently used with renewable fuels. The potential market size for biofuels is upwards of $50 billion a year in the U.S. alone."
Management believes that Alliance, when our technology is commercialized, will be the lowest cost producer in the ethanol and biofuel space due to significantly lower feedstock cost and a very efficient conversion process. Additionally, the U.S. EPA offers an incentive renewable credit (RIN) for each gallon of fuel produced from renewable sources.
