Solar firm behind area projects files for bankruptcy
US arm of company says plans still moving forward
Prospects for the 1,000-megawatt solar plant being built in Blythe look increasingly bleak following the recent bankruptcy filing of German solar developer Solar Millennium, the company behind the project.
The company filed for insolvency — the German equivalent of bankruptcy — on Dec. 21, and its assets could soon be liquidated.
A news release on the company's website said the filing followed its inability to complete the sale of its U.S. solar projects, including two plants planned in Riverside County that are east of the Coachella Valley — Blythe and the 250-megawatt Palen project.
“Substantial contracts have already been signed. However certain conditions for the effectiveness of the agreements have not yet been met,” the announcement said.
The company had been negotiating since October to sell the U.S. projects to solarhybrid, another German solar developer.
What impact the bankruptcy will have on Solar Trust of America — the company's American subsidiary headquartered in Oakland — appears uncertain. The company has been managing the Blythe and Palen projects. Palen still awaits final approval.
Both projects are on public land in the Riverside East federal solar zone that stretches from Joshua Tree National Park to Blythe. Two other solar projects — Desert Sunlight and Genesis — are already under construction in that area.
Immediately following the filing in Germany, Solar Trust officials assured that the bankruptcy would not affect the company, which is incorporated in the U.S.
Edward Sullivan, vice president for communications, confirmed Friday that negotiations with solarhybrid were moving forward and could be completed early this year.
But the signals from Germany indicated the court- appointed official overseeing the case, called an insolvency director, was looking for buyers for the company's assets, with Solar Trust as well as the Blythe and Palen projects up for sale.
Under German law, an insolvency filing automatically triggers liquidation of a company's assets, though a court may allow a reorganization.
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