RENTECH, INC. (NASDAQ:RTK) Files An 8-K Termination of a Material Definitive Agreement

RENTECH, INC. (NASDAQ:RTK) Files An 8-K Termination of a Material Definitive Agreement
Item 1.02.

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Termination of a Material Definitive Agreement.

RTK WP Canada, ULC (“RTK WP Canada”), a wholly-owned subsidiary of Rentech, Inc. (“Rentech”), entered into an Agreement for the Purchase and Sale of Biomass with Drax Power Limited (“Drax”) dated as of May 1, 2013 (the “Drax Agreement”). to the terms of the Drax Agreement, RTK WP Canada was required to deliver approximately 400,000 metric tons of wood pellets annually to Drax for a ten-year term beginning in the fourth quarter of calendar year 2014 at a floating price indexed for inflation, fuel and fibre supply costs.If RTK WP Canada failed to deliver wood pellets under the Drax Agreement, RTK WP Canada was obligated to pay Drax an amount equal to the positive difference, if any, between the contract price for the wood pellets and the price of any wood pellets Drax purchased in replacement.Any payment obligations of RTK WP Canada to the Drax Agreement were guaranteed by Rentech in an amount not to exceed CAD$20 million under a Guaranty Agreement executed by Rentech on May 1, 2013 (the “Guaranty”).Rentech filed a copy of the Drax Agreement as material definitive agreement with the Securities and Exchange Commission on Form 10-Q on August 8, 2013.

On October 31, 2017, Rentech, RTK WP Canada and Drax entered into a Deed of Release and Termination that terminated the Drax Agreement and the Guaranty (the “Deed of Termination”).The Deed of Termination provides that all remaining rights and obligations of the parties under the Drax Agreement and the Guaranty shall terminate, except with respect to the Drax Agreement obligations regarding confidentiality, notices and governing law.The Deed of Termination also provides that the parties mutually release each other from all claims or demands in connection with the Drax Agreement and the Guaranty.

This Current Report on Form 8-K contains only a summary of certain provisions of the Deed of Termination and does not purport to be a complete summary of the Deed of Termination.


Rentech, Inc. is a provider of wood fiber processing services, wood chips and wood pellets. The Company’s processing business includes Fulghum Fibres, Inc. (Fulghum), which operates approximately 30 wood chipping mills in the United States and South America. The Company provides wood yard operations services. The Company operates a wood fiber processing business. The Company’s segments include Fulghum Fibres, which involves the operations of Fulghum; Wood Pellets: Industrial, which includes its facilities and wood pellet development activities, and Wood Pellets: New England Wood Pellet, LLC (NEWP), which involves in the operations of NEWP and produces wood pellets for the residential and commercial heating markets in the United States, and it also includes Allegheny Pellet Corporation’s (Allegheny’s) operations.

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