BY Fraser Tennant
To facilitate a sales process and maximise value for its stakeholders, US solar developer Pine Gate Renewables and certain of its subsidiaries has filed for Chapter 11 bankruptcy.
One of the leading solar development firms in the US with more than 30 gigawatts of solar power in development, Pine Gate Renewables employs over 300 people and has developed over 100 new solar facilities since its founding in 2016.
The North Carolina-based company is the largest renewables developer to collapse in the aftermath of US President Donald Trump’s cuts to solar and wind tax credits. As a result, the company is pursuing a strategic and value-maximising sales process for substantially all of its assets and business operations.
ACT Power Services, Pine Gate’s wholly-owned operations and maintenance provider, is not part of the Chapter 11 process. Pine Gate is, however, in active discussions with multiple interested parties to identify a value-maximising sale transaction for the ACT business.
During the court-supervised sales process, Pine Gate and ACT Power Services will continue to support their project partners and advance projects currently in development and under construction. Pine Gate’s operational projects will also continue to generate and sell power.
“Since our founding, 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 of Pine Gate. “To ensure that our projects continue generating renewable energy, we made the strategic decision to commence a court-supervised sales process.”
To support the company through the bankruptcy process, Pine Gate 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.
“With significant financial support from certain of our current lenders, we are 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,” added Mr Catt.
Pine Gate expects to complete the sales process, which will provide interested parties the opportunity to submit competing bids for the company and its assets, in approximately 45 days.
Mr Catt concluded: “As we move through the Chapter 11 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.”
News: Solar power producer Pine Gate blames Trump’s cuts in bankruptcy