The bankruptcy of a Colorado-based solar energy firm is hitting a Tulsa investment company to the tune of more than $23 million.
Black Coral Capital and First Solar Distributed Generation LLC based in Tempe, Arizona are the holders of $23.37 million in secured debts of Clean Energy Collective LLC, a Louisville, Colorado company that has filed for Chapter 11 reorganization. Louisville is a suburb located between the cities of Denver and Boulder.
The filing occurred as Clean Energy prepared to sell part of itself to one of the country’s largest investor-owned utility companies, according to a report by Colorado Hometown Weekly.
In documents submitted to the U.S. Bankruptcy Court of Colorado, the Louisville solar developer said it is planning to sell its subsidiary in charge of handling real estate and construction operations to the renewable-energy development division of New York-based utility giant Consolidated Edison Inc. (NYSE: ED).
If approved by the court, the bankruptcy plan will allow Con Ed to complete the purchase without the possibility of other claims or liens being made against its new assets. After that sale closes, the companies will be dissolved.
Clean Energy Collective has an estimated 42 local employees and 60 global employees, according to BizWest data.
The company reported $23.37 million in secured debts held by Tulsa, Okla. investment firm Black Coral Capital and Tempe, Arizona-based First Solar Distributed Generation LLC. It has $11.15 million in listed assets.
The solar firm’s revenues see-sawed in recent years, according to its corporate disclosures. It made $37.59 million in sales in 2018 and $139.1 million in 2019, but sales so far in 2020 plummeted to just $3.5 million for a 97% decrease in revenue.
Companies in Chapter 11 bankruptcy generally try to stay active during and after filing in an attempt to reorganize their debts and generally don’t aim to shut down completely unless they are filing a Chapter 7 bankruptcy. However, some business claimants will use Chapter 11 while liquidating so management can stay in place while its affairs are wrapped up.
The bankruptcy was first reported by BusinessDen.
Source: BizWest Media