Dakota Plains Holdings announced that it and six of its wholly owned subsidiaries filed voluntary Chapter 11 petitions in the United States Bankruptcy Court for the District of Minnesota (the "Bankruptcy Court") on Tuesday, December 20, 2016, initiating a process intended to preserve value and accommodate an eventual going-concern sale of Dakota Plains' business operations.

Dakota Plains is seeking and expects to obtain up to $2 million in post-petition debtor in possession financing from its senior secured lender, SunTrust Bank, which, subject to Bankruptcy Court approval, will provide the Company with liquidity to maintain its operations in the ordinary course of business during the Chapter 11 process. Dakota Plains has filed a series of motions with the Bankruptcy Court requesting authorization to continue normal operations. The Company expects that it will continue to work with its current vendors and customers without interruptions.

Dakota Plains also announced that it had filed a motion with the Bankruptcy Court to approve a sale of substantially all of the Company's assets to BioUrja Trading, LLC  ("BioUrja") for a purchase price of $8.55 million. BioUrja Trading is a "stalking horse" bidder in a sale process under section 363 of the Bankruptcy Code. BioUrja's asset purchase agreement will require Bankruptcy Court approval and be subject to higher or better offers. The sale process is supported by SunTrust Bank and will require Bankrupcty Court approval. Gabe Claypool, President, Chief Executive Officer and Chief Operating Officer of Dakota Plains, said, "We believe the Chapter 11 process will enable the terminal to continue operating and successfully restructure our balance sheet to position us for the future."