Asheville-based solar developer Pine Gate Renewables has filed for Chapter 11 bankruptcy protection. The filing allows the company to pursue a sale of its assets while continuing daily operations.
Pine Gate Renewables Voluntarily Files for Chapter 11 Bankruptcy
According to court documents, Pine Gate Renewables and certain subsidiaries have initiated Chapter 11 proceedings in the U.S. Bankruptcy Court for the Southern District of Texas.
The solar developer aims to facilitate a sale process designed to maximize value for stakeholders. The company expects to complete the process within 45 days, giving interested parties an opportunity to submit bids.
As the court-supervised sales process gets underway, the company is working to support its project partners. Pine Gate Renewables also plans to move forward with projects currently in development or under construction. Operational projects will continue generating and selling power as usual.
Proceedings So Far
According to the official filing in the Texas bankruptcy court, both assets and liabilities of Pine Gate Renewables are reported in the range of $1 billion to $10 billion.
The North Carolina company initiated the Chapter 11 process through different ‘first day’ motions in the Texas bankruptcy court. The filings are intended to maintain normal operations and uphold commitments to stakeholders.
The motions include requests to continue paying wages and benefits to employees. Through the motions, Pine Gate Renewables also expects to fulfill agreements with commercial partners after the filing. The company hopes to receive the Texas court’s approval in a short while for these requests.
Mark Rajcevich, Managing Director at Alvarez & Marsal, has been appointed Chief Restructuring Officer for Pine Gate Renewables. The renewable energy company expects Rajcevich to deploy his skills from 20+ years of experience in financial restructuring, particularly in the energy industry.
Joele Frank, Wilkinson Brimmer Katcher, is the strategic communications advisor to Pine Gate Renewables.
The legal representatives of Pine Gate Renewables in the latest Chapter 11 bankruptcy are Hunton Andrews Kurth LLP and Latham & Watkins LLP. Lazard is helping the North Carolina company as an investment banker.
Financial Agreements With Creditors
To support the restructuring process, Pine Gate Renewables has secured financial commitments from certain creditors. The agreements include potential purchases of solar projects that are operational, nearing completion, or under construction.
These projects were used as collateral for the loans the creditors provided. Through a ‘stalking horse bid,’ the lenders will make an initial bid, setting the minimum price, while other buyers could still offer more.
Another secured lender has committed to an initial bid for Pine Gate’s primary power generation business and much of its 10 GW project pipeline. The lender will act as a ‘stalking horse bidder’ for Pine Gate’s assets and platform.
As a leading owner and developer of renewable energy sites, Pine Gate Renewables has more than 30 GW in its project pipeline. The company operates over 2 GW of solar and storage assets and has secured approximately $10 billion in project financing and capital investment.
Pine Gate Renewables is hoping to get the maximum value for its stakeholders in the next 45 days as it continues regular operations through the Chapter 11 filing.
