Pine Gate Renewables says it has filed for Chapter 11 protection as part of a court-supervised sale process aimed at restructuring its 10 GW (DC) development pipeline and retaining operations.
Pine Gate Renewables, a developer, owner and operator of renewable energy projects in the United States, said it has filed for Chapter 11 bankruptcy protection. It is beginning a sale process for “substantially all of its assets and business operations.
To support Pine Gate in this process, the company said it has secured financing commitments from some of its current lenders that will be used to support activities including the advancement of projects in development and under construction.
The company enters into a series of agreements with its lenders, including:
- Sale of Pine Gate’s operating (and nearly completed) projects and development assets securing respective financing facilities from each such lender. Each such lender will act as the “stalking horse bidder” for their respective portfolio of assets, subject to higher or otherwise better bids for such assets or the business.
- An agreement with a secured lender to sell Pine Gate’s independent power producer platform and substantially the entire development pipeline, which includes approximately 10 GW of secure new project capacity. The lender will act as a stalking horse bidder.
Competitive bids for the company and its assets are expected within approximately 45 days, the company said in a news release.
During the sales process, Pine Gate and ACT Power Services will continue to support their project partners and advance projects currently in development and construction and provide O&M services. Pine Gate’s operating projects will also continue to generate and sell energy.
“Since our founding nearly a decade ago, Pine Gate has grown tremendously, deploying innovative solar and energy storage projects at scale that enable us to deliver renewable, reliable and affordable energy,” said Ben Catt, CEO of Pine Gate. “To ensure that our projects continue to generate sustainable energy, we have made the strategic decision to initiate this sales process under judicial supervision.”
In addition, to support the process, the company appointed Mark Rajcevich, Managing Director at Alvarez & Marsal, as Chief Restructuring Officer. Rajcevich brings more than twenty years of experience in financial restructuring and the energy sector.
Solar energy has suffered from recent policy headwinds, including the One big, beautiful bill And executive and agency actions aimed at combating the development of solar energy. After years of growth, Wood Mackenzie predicts that solar installations may grow decrease by 1% annually until 2035.
Follow this link to watch pv magazine USA recent webinar with industry leaders and guidance for unlocking capital and ensuring project success despite persistent headwinds.
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