Saying it has an asset sale deal nearly nailed down, Sundevil Power Holdings LLC on Aug. 8 asked the U.S. Bankruptcy Court for the District of Delaware for extra time to file a Chapter 11 reorganization plan based on that asset sale.
On Feb. 11, Sundevil and subsidiaries filed for Chapter 11. These companies are merchant power generators through Sundevil’s ownership of two of the four 550-MW natural gas-fired power blocks of the Gila River Power Station (GRPS) located in Gila Bend, Arizona. Sundevil and the other power block owners sell energy into the Southwest electric power market, specifically the sub-region of Arizona, New Mexico, and Southern Nevada known as the Desert Southwest. Most of Sundevil’s output is sold at the Palo Verde hub and into the California Independent System Operator market. Sundevil also is capable of reaching other market hubs such as Mead (Southern Nevada) and Four Corners.
The debtors filed these chapter 11 cases with the goal of continuing the process for a sale of all or substantially all of the assets of Sundevil or of all of the equity interests in Sundevil through section 363 of the Bankruptcy Code.
On May 4, the debtors advised the court and all parties in interest that they had accepted, subject to approval of the court and an agreement on definitive documentation, the bid of CLMG Corp., on behalf of itself and Beal Bank USA, for the purchase of substantially all of the assets related to the debtors’ business.
Said the Aug. 8 application: “The Debtors’ negotiation with the Successful Bidder of the definitive documentation to close upon the sale has recently concluded, and the Debtors believe they are on the eve of filing an executed asset purchase agreement and a proposed form of sale order, which the Debtors intend to present to the Court on August 23, 2016 (the ‘Sale Hearing’).”
On June 10, the debtors filed their first motion seeking an extension of the exclusive periods during which they may file and solicit acceptances of a Chapter 11 plan. On July 7, the court ordered the initial 120-day period after the petition date within which a debtor has the exclusive right to file a plan extended to Aug. 9, and the initial 180-day period after the petition date within which a debtor has the exclusive right to solicit and obtain acceptances of a plan from creditors.
The debtors now seek to extend the filing deadline a further sixty days to Oct. 7, along with a similar extension of the creditor solicitation period to Dec. 16.
This request has an Aug. 19 objection deadline, with a hearing date of Aug. 23.