In a move that sent ripples through the renewable energy sector, Pine Gate Renewables has filed for Chapter 11 bankruptcy protection in a Texas federal court, weighed down by more than $1 billion in debt and plans to sell its business during the proceedings.
The filing, made late Thursday, revealed that the Asheville, North Carolina-based solar energy developer carries between $1 billion and $10 billion in both assets and liabilities, alongside several affiliated entities. The bankruptcy petition marks a dramatic turning point for one of the U.S.’s fastest-growing solar firms, once hailed as a rising star in clean energy innovation.
Lenders to Submit Stalking Horse Bids
According to Pine Gate’s filing, the company will use the Chapter 11 process to auction its solar projects and operating platform. Its existing lenders — Brookfield Asset Management, The Carlyle Group, and Fundamental Renewables — plan to submit stalking horse bids for assets currently securing their investments.
A separate secured lender has also agreed to bid for Pine Gate’s independent power producer (IPP) platform and development pipeline, effectively setting a floor price for the company’s assets.
“To ensure that our projects continue generating renewable energy, we made the strategic decision to commence this court-supervised sales process,” CEO Ben Catt said in a statement.
