SunEdison judge okays auction of several wind and solar projects

The bankruptcy judge for SunEdison on Aug. 19 approved a “stalking horse” auction process, with NRG Renew LLC as the stalking horse bidder, that would see the sale of various solar and wind projects of SunEdison and its subsidiaries, including SUNE Wind Holdings, SunE Waiawa Holdings, First Wind California Holdings, First Wind Solar Portfolio and Somerset Wind Holdings.

The Aug. 19 order set these auction milestones:

  • Bid Deadline, September 6, 2016 at 4:00 p.m. (EST)
  • Auction (if necessary), September 9, 2016 at 10:00 a.m. (EST)
  • Sale Hearing, September 15, 2016 at 10:00 a.m. (EST)

The live auction would only be needed if one or more qualified bidders lodge paper bids by the Sept. 6 deadline. The auction, if any, would take place at the offices of counsel for the debtors, Skadden, Arps, Slate, Meagher & Flom LLP, Four Times Square, New York, NY 10036.

SunEdison on Aug. 9 asked its bankruptcy court for entry of two orders; to approve a sale process for certain power project development assets and to approve a “stalking horse” bid from NRG Renew LLC as the bid to beat in that auction process. 

On April 21, SunEdison and affiliates sought Chapter 11 protection in the U.S. Bankruptcy Court for the Southern District of New York. The “stalking horse” purchase agreement says that NRG Energy (NYSE: NRG) has provided a financial guaranty to NRG Renew under this agreement.

Under the Stalking Horse Agreement, SunEdison has agreed to sell these equity Interests for $144 million plus potential earnout payments less certain potential purchase price reductions.

The sale process involves several packages of assets, including these projects:

  • Enterprise Project, the 108 MW DC solar project located in Iron County, Utah;
  • Escalante I Project, the 108 MW DC solar project located in Beaver Country, Utah;
  • Escalante II Project, the 108 MW DC solar project located in Beaver County, Utah;
  • Escalante III Project, the 108 MW DC solar project located in Beaver County, Utah;
  • Granite Mountain East Project, the 80 MW AC solar power project located in Iron County, Utah;
  • Granite Mountain West Project, the 50.4 MW AC solar power project located in Iron County, Utah; 
  • Iron Springs Project, the 80 MW AC solar project located in Iron County, Utah, and owned by Iron Springs Solar LLC, an indirect wholly-owned subsidiary of SunE Wind Holdings Inc.;
  • Jupiter Project, the 329 MW DC solar project located in California and owned by California Jupiter LLC, a wholly-owned subsidiary of First Wind California Holdings LLC;
  • Somerset Project, the 85 MW AC wind project located in Maine and owned by Somerset Wind LLC, a wholly-owned subsidiary of Somerset Wind Holdings LLC;
  • Rattlesnake Project, the 150 MW AC wind project located in Washington and owned by Rattlesnake Flat LLC, a wholly-owned subsidiary of Rattlesnake Flat Holdings LLC; and
  • County Line Project, the 449 MW AC wind project located in Maine and owned by Greenmountain Wind LLC, a wholly-owned subsidiary of Greenmountain Wind Holdings LLC.
About Barry Cassell 20414 Articles
Barry Cassell is Chief Analyst for GenerationHub covering coal and emission controls issues, projects and policy. He has covered the coal and power generation industry for more than 24 years, beginning in November 2011 at GenerationHub and prior to that as editor of SNL Energy’s Coal Report. He was formerly with Coal Outlook for 15 years as the publication’s editor and contributing writer, and prior to that he was editor of Coal & Synfuels Technology and associate editor of The Energy Report. He has a bachelor’s degree from Central Michigan University.