SunEdison to sell seven Minnesota solar projects to AES Distributed Energy

SunEdison Inc. on Dec. 22 asked its federal bankruptcy court for approval of the sale of seven solar projects in Minnesota to AES Distributed Energy Inc. 

A hearing on the motion is to be held on Jan. 12 at the U.S. Bankruptcy Court for the Southern District of New York. On April 21, 2016, SunEdison and affiliated companies began these Chapter 11 cases.

The sale would be made by SunEdison affiliate SunE MN Development LLC. Previously, the company sought and obtained this court’s approval, after a public auction, to sell the equity interests in five of these project companies to SoCore MN Acquisition LLC. SoCore subsequently exercised the right to not close on the sale of these five particular project companies, which constituted a subset of the overall assets that SoCore purchased.

In this new sale, AES elected to purchase two additional project companies that were not contemplated to be sold under the SoCore deal. For the five project companies which were previously part of the SoCore sale, AES has offered approximately 81.1% of the consideration that would have otherwise been received from SoCore. Given that the equity interests have already been marketed through four separate processes spanning more than a year, and these interests decline in value with the passage of time, SunEdison now seeks approval to sell these seven projects in a private sale transaction.

Said the Dec. 22 motion about the AES sale deal: “The Seller has a sound business justification for consummating the Sale Transaction. The Debtors’ highest priority in the Chapter 11 Cases is to maximize the value of their estates for the benefit of their creditors and other stakeholders. To that end, the Debtors have secured, after extensive negotiations, a compelling offer from the Buyer for the Equity Interests. Specifically, the Purchase Price in the PSA is for $20,851,700, subject to certain adjustments as set forth in more detail in the PSA.”

The seven to-be-sold projects, which are due for completion in 2017 and 2018, are:

  • SunE Feely 1 LLC, Feely project, 7.5 MW (dc);
  • SunE Lundell 1 LLC, Lundell project, 6 MW (dc);
  • SunE Moore 1 LLC, Moore project, 7.5 MW (dc);
  • Randolph CSG 1 LLC, Randolph project, 7.5 MW (dc);
  • SunE Stolee 1 LLC, Stolee project, 4.5 MW (dc);
  • SunE Winter 1 LLC, Winter project, 7.5 MW (dc); and
  • Wyoming 2 CSG 1 LLC, Wyoming 2 project, 7.5 MW (dc).

A buyer contact is: AES Distributed Energy Inc., 4875 Pearl Street Circle, Suite 200, Boulder, CO 80301, Attention: Colin Temme, Vice President of Legal, colin.temme@aes.com.

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.