SunEdison on Oct. 8 applied with its bankruptcy court for approval of a “stalking horse” auction of 15 wind turbines, with BayWa r.e. Wind LLC as the potential stalking horse buyer.
A hearing on the motion may happen on Oct. 20, with an Oct. 18 deadline for any party to object. SunEdison, a major developer of solar and wind projects, filed for Chapter 11 protection in April and since then has been divesting various power development projects and power plant equipment.
These are 15 General Electric 1.79-100 wind turbines that will be sold. One of SunEdison’s OEM suppliers is General Electric under a master turbine supply agreement.
Said the Oct. 8 application: “Due to the Debtors’ financial condition and despite ongoing efforts to stabilize its business, the Debtors are not currently positioned to commence the development of new Wind Projects. The Debtors have therefore determined that it is in the best interests of their estates to monetize certain of their wind turbine inventories, including the Turbines. The Turbines are likely losing value by awaiting deployment because newer generations of turbines will become available and certain tax attributes relating to the Turbines will be lost or reduced at the end of calendar year 2016. Further, as described above the Turbines require ongoing expenditures by the Debtors, including payments to OEMs or third parties for storage and maintenance costs. Additionally, property taxes must be paid by the owner of the Turbines. Therefore, selling the Turbines now through a robust marketing and, potentially, auction process will allow the Debtors’ estates to monetize otherwise nonproductive and depreciating assets for the benefit of their estates and creditors.”
Under the proposed auction process, competing bidders would need to offer paper bids by Nov. 11 An auction would be held on Nov. 15 at the offices of Skadden, Arps, Slate, Meagher & Flom LLP, Four Times Square, New York, NY 10036, or such other location and time as shall be timely communicated to all entities entitled to attend the auction. The sale hearing would happen on Nov. 17 at the U.S. Bankruptcy Court for the Southern District of New York.