With a 12.4% interest rate, a 4% fee and and repayments by March 24, 2011, the Securities and Exchange Commission reports that the bridge loan is secured by an equity stake in a BioFuel subsidiary.
The two hedge funds own 69% of BioFuel’s outstanding common shares combined, MarketWatch said. Third Point and Greenlight stand to make profits if BioFuel does not produce the payments.
With a debt of $212 million, BioFuel has lost $57 million since 2007.
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