Pine Gate Renewables, LLC, a leading developer and owner-operator of renewable energy projects across the United States, has announced that it is pursuing a strategic and value-maximizing sales process for substantially all of its assets and business operations. Pine Gate’s operations will continue uninterrupted while the company continues to engage in a competitive sales process with multiple interested parties to transition ownership of its solar and energy storage project fleet while preserving jobs and maximizing value.
To support Pine Gate through this process
The Company has secured financing commitments from certain of its current lenders that will be used to support operations, including the advancement of projects in development and under construction. As part of the financing, Pine Gate is entering into a series of agreements with its lenders, including:
Agreements with certain secured lenders to sell certain of Pine Gate’s solar operating (and near completion) projects and development assets that secure each such lender’s respective financing facilities. Each such lender will serve as the “stalking horse bidder” for their respective asset portfolio, subject to higher or otherwise better offers for such assets or the Company; and
An agreement with another secured lender to sell Pine Gate’s independent power producer platform and substantially all of its development pipeline, which includes ~10 GWdc of safe harbored new project capacity. The lender will serve as the “stalking horse bidder” for these assets and the platform, subject to higher or otherwise better offers for such assets or the company.
To facilitate the sales process and maximize value for all stakeholders
Pine Gate and certain subsidiaries have initiated voluntary Chapter 11 proceedings in the U.S. Bankruptcy Court for the Southern District of Texas. Pine Gate expects to complete the marketing and sales process, which will provide interested parties the opportunity to submit competing bids for the company and its assets, in approximately 45 days.
ACT Power Services, the company’s wholly owned operations and maintenance (“O&M”) provider, is not part of the Chapter 11 process. The company is, however, in active discussions with multiple interested parties to identify a value-maximizing sale transaction for that business.
During the court-supervised sales process, Pine Gate and ACT Power Services are continuing to support their project partners and advance projects currently in development and under construction, as well as provide O&M services. Pine Gate’s operational projects will also continue to generate and sell power.
“Since our founding almost 10 years ago, Pine Gate has grown tremendously, deploying innovative solar and energy storage projects at scale that enable us to deliver renewable, reliable, and affordable energy,” said Ben Catt, Chief Executive Officer of Pine Gate. “To ensure that our projects continue generating renewable energy, we made the strategic decision to commence this court-supervised sales process. With significant financial support from certain of our current lenders, we’re confident that we will successfully conduct a competitive sales process that reflects the inherent value of our nationwide portfolio of solar and energy storage projects.”
Mr. Catt continued, “I’m grateful for the hard work and dedication of the Pine Gate team, who has been key to helping us drive the renewable energy transition. As we move through this process, we remain committed to supporting our valued project partners across our more than 100 operational solar facilities and forging ahead with our projects in development and under construction.”
Additional Information Regarding the Court-Supervised Sales Process
Pine Gate has also filed a number of customary “first day” motions with the Court seeking to maintain uninterrupted operations and uphold its go-forward commitments to stakeholders. These motions include requests to continue paying wages and providing benefits to the company’s employees as usual and to continue honoring postpetition obligations to commercial partners. Pine Gate expects to receive court approval for these requests shortly.
In addition, to assist in the process, the Company has appointed Mark Rajcevich, Managing Director at Alvarez & Marsal, as Chief Restructuring Officer. Mr. Rajcevich brings more than 20 years of financial restructuring experience and energy industry expertise to Pine Gate.
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