Bankrupt renewable power plant developer SunEdison (SUNE) has asked a U.S. bankruptcy court judge to approve the sale of its stake in a California solar project to an affiliate of hedge fund D.E. Shaw.
The purchase price of the interest is $80 million, and SunEdison expects to net $70 million in the sale, according to court filings made on Tuesday.
SunEdison filed for bankruptcy in April after an aggressive growth plan proved unsuccessful.
The power plant, in southern California, is not yet complete, according to court papers. Progress slowed substantially after SunEdison filed for bankruptcy, the papers say.
The company will ask for an expedited auction, should the judge not grant SunEdison’s request for a sale, with the D.E. Shaw affiliate’s offer as the stalking horse bid, setting the floor for others.
In an auction, D.E. Shaw has offered to pay $10 million less for the stake in the plant, according to the papers.
Before SunEdison filed for bankruptcy, D.E. Shaw, as part of a group of buyers, planned to acquire the project in return for canceling debt owed to them by SunEdison. That deal was never finalized.
After SunEdison filed for bankruptcy, the company and its advisers looked for offers for the project as a standalone asset and as part of a portfolio. They received 26 bids for the project, four for it on its own and 22 for it as part of a portfolio, according to court papers.
D.E. Shaw’s offer was considered the best value because of the hedge fund’s familiarity with the project and the price it offered, among other reasons, the papers say.
The Wall Street Journal first reported the proposed sale.