BIOFUEL LETTERHEAD] CONFIDENTIAL AND PROPRIETARYConfidential and Proprietary • May 12th, 2011 • BioFuel Energy Corp. • Industrial organic chemicals
As you know, Greenlight APE, LLC is acting as administrative agent for certain lenders under that certain Loan Agreement (the “Loan Agreement”), dated as of September 24, 2010 (collectively as identified therein, the “Lenders”), pursuant to which the Lenders have made a bridge loan (the “Bridge Loan”) to BioFuel Energy Corp. (“BioFuel Energy”), whereby as soon as reasonably practicable following the closing of the Bridge Loan, BioFuel Energy will use commercially reasonable best efforts to commence a registered rights offering pursuant to the appropriate registration statement whereby it will offer Series A Convertible Preferred Stock (as defined in the Loan Agreement) to its existing stockholders on a pro rata basis and use the proceeds raised in connection with the rights offering to repay the Bridge Loan and certain other indebtedness of BioFuel Energy, LLC (the “Rights Offering,” together with the Bridge Loan, the “Transaction”).
