Solar Trust of America has bought some more time in its bankruptcy proceedings as Bloomberg reports that the company was approved for new loans while it continually pursues to sell it assets. The company will receive financing arranged by Mason Capital Management, which includes US$25 million in working capital loans and US$18.3 million in letters of credit.
The funding takes the place of the US$3.9 million interim financing, which the bankruptcy court originally approved April 3, one day after the company filed for Chapter 11 insolvency. At the time, NextEra Energy Resources was set to provide the interim funding. Solar Trust the developer of solar thermal power plants in various US States, including the 1,000MW Blythe project in Riverside County, California.
According to Ned Kleinschmidt, co-founder of RPA Advisors and Solar Trust’s chief restructuring officer, the funding, “is going to allow us to conduct a more well-paced sales process that will get more participation and maximize asset value.” He advised Bloomberg that NextEra’s funding would have given Solar Trust only about 30 days to complete a sale of assets. “Now with the larger financing, we have a longer runway.” Kleinschmidt noted that the court has not set a due date for bids from interested buyers, but he anticipates the whole sale process to take around 90 days.
The report notes that the court has yet to receive bids, but NextEra has stated that it is a potential buyer. “NextEra may be interested in purchasing the debtors’ assets,” including the interconnection agreement for Blythe, it said April 3 in a court filing. That contract “is the single most valuable asset possessed by any of the debtors’ estates,” NextEra said.