Revolution Aluminum requests for a loan to pay back debt

<p>Revolution Aluminum Propco, a subsidiary of Revolution Aluminium LLC, filed a motion in the court requesting permission for borrowing $5.7 million to pay off its outstanding debts before starting their planned aluminium plant in Pineville. They also claimed that they secured the promise of financing in the U.S. Bankruptcy Court filings.<br /><br />Revolution Aluminium LLC, which announced plans to build a $1.5 billion production complex in 2015 and promised jobs to 1,000 people, faced multiple legal actions seeking to recover millions of outstanding payment due from loans or services rendered.<br /><br />According to the motion, Thomas Tucker and Bayou Engineering LLC would lend $5.7 million to Revolution Aluminum Propco to pay back the loan. Tucker is the president of Bayou Engineering Company, which was supposed to be one of the partner companies in the proposed aluminium plant.<br /><br /><img style="vertical-align: middle; display: block; margin-left: auto; margin-right: auto;" src="http://www.alcircle.com/uploads/images/revoloution%20aluminium.jpg" alt="News" width="480" height="420" /><br /><br />Revolution Aluminum Propco would use the initial funds to pay $1.32 million to the three petitioners seeking to force Revolution Aluminum Propco into involuntary bankruptcy.&nbsp; According to the terms and conditions of the motion, Tucker and Bayou Engineering would offer the loan in exchange of a primary mortgage on the Innovation Park property, at 6 per cent interest and a five-year maturation. The loan is subject to further due diligence by the lenders.<br /><br />It is to be noted that the Bankruptcy Court stopped Revolution Aluminum Propco from incurring further debt on the property without approval. A hearing on the proposed new loan is scheduled for Wednesday. Attorneys for Revolution Aluminum Propco have also filed a motion to dismiss the petition, arguing that once the loan is secured and the petitioners paid, they will need no relief.<br /><br />{googleAdsense}<br /><br />Commenting on the loan request, Alexandria attorney Bradley Drell, who represents the petitioners, said ,"The commitment talks about a due diligence period, so this loan commitment is not really a commitment, but a statement that Tucker might put up the money," Drell said. "This is not permanent financing, but another 'bridge' loan and Revolution is still seeking permanent financing, which may or may not materialize. I am simply going to continue to press my client&rsquo;s rights until they are paid."<br /><br />In addition to paying the petitioners, the new loan would be used to settle other obligations of Revolution Aluminum and Revolution Aluminum Propco.</p>