NEW YORK, April 4 (Reuters) - April 2 (Reuters) - Solar
Trust of America LLC, which holds the development rights for the
world's largest solar power project, on Monday filed for
bankruptcy protection after its majority owner began insolvency
proceedings in Germany.
The Oakland-based company has held rights for the
1,000-megawatt Blythe Solar Power Project in the southern
California desert, which last April w on a conditional commitment
for a $2.1 billion loan guarantee fr om the U.S. Department of
Energy. It is unclear how the bankruptcy will
affect that project. The loan guarantee was not received.
Solar Trust said it ran short of liquidity after Solar
Millennium AG S2MG.DE, which holds a 70 percent stake, sought
court protection in December.
Solar Millennium then tried to sell that stake to
solarhybrid AG SHLG.DE, but that transaction collapsed when
solarhybrid also sought court protection in Germany.
Edward Kleinschmidt, Solar Trust of America's chief
operating officer, in a court filing said the company has
already missed two quarterly rent payments on the Blythe
project, and cannot make several other payments due imminently.
He said NextEra Energy Resources LLC has committed to
provide some financing and "expressed an interest" in serving as
an initial bidder for some assets.
Ferrostaal AG owns the other 30 percent of Solar Trust of
America but does not provide financial help, Kleinschmidt said.
Solar Trust of America and several affiliates filed for
protection from creditors with the U.S. bankruptcy court in
Delaware. It estimated to have as much as $10 million of assets,
and between $50 million and $100 million of liabilities.
Blythe is about 220 miles (354 km) southeast of Los Angeles.
"We have been working with Solar Trust of America for a
couple of years in getting this project going," David Lane,
Blythe's city manager, said in an interview. "Although the
project is not in the city limits, we are the only city within
100 miles. My sense is that with the large investment in what
was to have been the world's largest solar power plant, someone
somewhere will buy it and build it."
The case is In re: Solar Trust of America LLC et al, U.S.
Bankruptcy Court, District of Delaware, No. 12-11136.
For the debtors: Michael Nestor of Young Conaway Stargatt &
Taylor.
(This version corrects second paragraph to make clear that
company received a conditional commitment for a loan guarantee,
not a conditional loan guarantee.)
(Reporting by Jonathan Stempel)
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