A Delaware bankruptcy judge on Thursday approved Meyer Burger’s $29 million Chapter 11 asset sale, clearing the way for the U.S. arm of the Swiss solar-panel giant to shed nearly all of its holdings—even as unsecured creditors warned the deal leaves them stranded while enriching secured lenders.
U.S. Bankruptcy Judge Craig T. Goldblatt gave the green light for Meyer Burger’s U.S. unit to sell the bulk of its assets to Waaree Solar Americas Inc. for $18.5 million in cash. In addition, he approved the sale of solar cells to Babacomari Solar North, which agreed to acquire them through a $10.2 million credit bid.
Creditors Cry Foul
The unsecured creditors’ committee launched a sharp objection, accusing Meyer Burger of running a process that favored secured lenders while offering “next to no material benefit” for other creditors. Their filing argued that allowing such a sale would essentially turn the bankruptcy court into a foreclosure tool—“enriching secured parties and professionals, while leaving unsecured creditors in the lurch.”
But Judge Goldblatt overruled those arguments, insisting that the company had run a proper auction. “I am satisfied that the debtor ran an appropriate process. Every effort was made to obtain the highest and best bids,” he said. Still, the court ordered Meyer Burger to place any leftover sale proceeds into escrow after paying back the $9.2 million in debtor-in-possession financing.
