#United States #Renewable Energy #Asheville #Chapter 11 #Pine Gate

Pine Gate Renewables: Navigating Strategic Sales and Restructuring

Pine Gate Renewables, a key player in the renewable energy sector, recently announced significant developments as it pursues a strategic and value-maximizing sales process for its assets. The move comes amidst strong backing from financial stakeholders and aims to ensure uninterrupted operations, even while engaging with potential acquirers.

Based in Asheville, North Carolina, Pine Gate has been at the forefront of renewable energy, developing and operating projects across the United States. The company has recently initiated voluntary Chapter 11 proceedings in the U.S. Bankruptcy Court for the Southern District of Texas. This strategic approach is designed to facilitate a competitive sales process for its solar and energy storage projects, all while preserving jobs and maximizing value.

Ongoing Operations Amidst Chapter 11

Despite entering Chapter 11, Pine Gate is committed to maintaining its operations uninterrupted. The company is actively working on advancing projects that are either under development or currently in construction. This ensures that power generation and sales will continue without disruption, allowing them to generate revenue even during the restructuring process.

Pine Gate's management expressed confidence in these actions, highlighting their commitment to stakeholders and employees. The company has secured financing commitments from several of its lenders, which will support its operations as it navigates this process. Secured lenders are positioned as “stalking horse bidders,” creating a competitive environment for potential buyers of Pine Gate’s assets. This step is crucial for maximizing the value of the assets and ensuring the smooth ownership transition.

The Path Ahead: Challenges and Opportunities

Ben Catt, the CEO of Pine Gate, emphasized the impressive growth the company has achieved since its inception nearly a decade ago. With a pipeline of over 30 GW of projects and significant capital investment, Pine Gate is well-positioned to leverage its substantial assets during the sales process. The CEO remains optimistic that the company will successfully secure a competitively advantageous deal that reflects the inherent value of their nationwide portfolio.

In addition to retaining core operations during the sales process, Pine Gate is also actively involved in discussions around valuing its subsidiary, ACT Power Services. This organization is responsible for operations and maintenance services and is not included in the Chapter 11 proceedings. Their continued operational stability ensures sustained project development and allows Pine Gate to uphold contractual commitments, including payroll and employee benefits.

Expert Guidance and Support Network

To navigate the complexities of restructuring, Pine Gate has enlisted the expertise of Alvarez & Marsal, appointing Mark Rajcevich as Chief Restructuring Officer. With over 20 years of experience in financial restructuring, Rajcevich's insights are expected to guide Pine Gate through this critical phase effectively. The appointment aims to streamline the restructuring process and position Pine Gate for a robust future in the renewable sector.

As Pine Gate embarks on this crucial phase, they are open to engaging with the community and their stakeholders, emphasizing the importance of transparency during these transitions. The company has established dedicated resources for stakeholders to access information about the court-supervised sales process.

Community and Sustainability Commitment

Throughout these changes, Pine Gate remains devoted to sustainability and community impact. The company is committed to investing in the communities where they operate, pursuing partnerships, and contributing positively through the Pine Gate Community Impact Fund. The ongoing projects not only cater to energy needs but also focus on enhancing local developments and supporting renewable energy transitions across the country.

In summary, while Pine Gate Renewables faces the challenges of a restructuring process, its commitment to operational continuity, stakeholder engagement, and sustainable development highlights its potential to navigate this transition successfully. The path ahead is one of strategic optimism as the company positions itself for the future of renewable energy.