Motley Fool- A federal judge dismissed the bankruptcy case of Earth Biofuels Inc., which distributes country music star Willie Nelson’s biodiesel fuel, after the company agreed to an interim restructuring deal put forth by a group of hedge funds.
Judge Christopher S. Sontchi of the U.S. Bankruptcy Court in Wilmington, Del., dismissed the involuntary bankruptcy case on Monday.
In July, a group of hedge funds that claimed the Dallas-based company hadn’t been paying its debts on time filed an involuntary Chapter 7 petition against Earth Biofuels.
The company owes a group of eight hedge funds a total of $100.7 million on senior convertible notes it issued last year, according to court papers.
