Pine Gate Renewables files for Chapter 11, set to sell solar and energy storage fleet

Renewable energy developer and owner-operator Pine Gate Renewables filed for Chapter 11 bankruptcy and is starting the sales process for substantially all of its assets and business operations. Pine Gate says its operations will continue uninterrupted while the company engages 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.”

“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.”

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.

Pine Gate sale details

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. 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.

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.

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.

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.”