XCF Global’s Reno‑based subsidiary, New Rise Renewables Reno, LLC, entered into a forbearance agreement with its landlord, Twain GL XXVIII, LLC, on April 27 2026. The agreement, announced on May 1 2026, extends the ground lease for the Reno facility through January 1 2027 and requires the company to meet specified payment and performance conditions to retain the lease.
The lease extension provides XCF Global with additional time to address liquidity challenges and operational hurdles at the Reno plant. The company’s debt‑to‑equity ratio stands at 6.78 and its current ratio is 0.11, underscoring a high leverage position and limited short‑term liquidity. The agreement also obligates XCF to make required payments on schedule, a condition that will be closely monitored by investors and creditors.
The Reno facility was commissioned in February 2025 and began commercial operations in March 2025. Since then it has produced over 2.5 million gallons of renewable fuels, including sustainable aviation fuel, renewable diesel, and renewable naphtha. The plant is undergoing planned upgrades to strengthen long‑term operability, with a targeted return to full operations in June 2026.
XCF Global has faced significant financial strain, including a nearly $112 million loan default from Greater Nevada Credit Union and other unsecured loan defaults totaling around $1.7 million. The company has disclosed substantial doubt about its ability to continue as a going concern, a situation that the forbearance agreement seeks to mitigate while the firm works to resolve its broader financial obligations.
Strategically, the company’s New Rise subsidiary received notice that its Supply and Offtake Agreement with Phillips 66 will terminate effective May 1 2026, eliminating a key feedstock supplier and offtake partner. In response, XCF has entered into a binding term sheet with BGN INT US LLC for a renewable‑fuel tolling framework that will enable production of sustainable aviation fuel and renewable naphtha. The company is also pursuing a second Reno facility and potential sites in North Carolina and Florida, aiming for a total production capacity of approximately 160 million gallons per year by the end of 2028, and is in the final stages of a business combination with DevvStream Corp. and Southern Energy Renewables Inc.
The forbearance agreement offers short‑term relief but highlights the company’s ongoing liquidity and operational challenges. Investors will closely monitor the company’s ability to meet the lease conditions, complete the planned upgrades, secure alternative feedstock and offtake arrangements, and navigate the pending business combination. Failure to satisfy these conditions could jeopardize the lease and further impact XCF Global’s operational viability.
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