Nov 04, 2014. /Lesprom Network/. Rentech, Inc. has closed the previously announced sale of its alternative energy technologies to Sunshine Kaidi New Energy Group Co., Ltd. (Kaidi). Rentech received a cash payment of $14.4 million from Kaidi, which is in addition to $0.5 million in cash payments previously received. Kaidi will pay an additional $0.4 million to Rentech to purchase various equipment currently located at Rentech’s decommissioned Product Demonstration Unit (PDU), resulting in $15.3 million of total proceeds to Rentech from these transactions. This additional transaction is expected to close before the end of the year, as the company said in the press release received by Lesprom Network. 

D. Hunt Ramsbottom, president and CEO of Rentech, stated, “We are pleased to have closed this sale as part of our cost reduction efforts and focus on our wood fibre processing and nitrogen fertilizer businesses. By monetizing these non-core assets, we have improved our balance sheet and will be realizing significant SG&A savings going forward.”

The transaction calls for the possibility of success payments to Rentech of up to $16.2 million. These payments would be triggered if Kaidi successfully builds and operates, at its cost, a demonstration-scale plant in China that uses the technologies acquired from Rentech and performs at specified levels. Rentech and Kaidi will share equally in any proceeds from the future sale of the PDU site in Commerce City, CO, net of transaction fees and carrying costs of the property incurred by Rentech after September 30, 2014. Rentech expects to close on the sale of the site in the first half of 2015.

The sale of the technologies should increase Rentech’s net operating loss carryforwards applicable to federally taxable income by approximately $12.5 million.

Rentech, Inc. owns and operates wood fibre processing, wood pellet production and nitrogen fertilizer manufacturing businesses.