Sundevil Power files bankruptcy, looks to sell assets or interests

By Caroline Salls

Pittsburgh, Feb. 11 – Sundevil Power Holdings, LLC filed for Chapter 11 bankruptcy on Feb. 11 in the U.S. Bankruptcy Court for the District of Delaware to continue seeking a buyer for substantially all of its assets or all of its equity interests.

The company said in a statement filed with the court that its efforts to find a third-party equity investor or sell its assets outside of bankruptcy have not yet resulted in a binding offer. Sundevil said it no longer has sufficient funds to continue this process.

Under Sundevil’s proposed asset sale procedures, indications of interest in purchasing the company’s assets are due by 5 p.m. ET on April 14. Final bids are due by noon ET on April 29.

An auction would be held on May 2, if necessary.

The company said its secured lender has agreed to provide $45 million in debtor-in-possession financing in order to continue to operate the business and continue the sale efforts in a Chapter 11 case.

CLMG Corp. is the administrative agent and Beal Bank USA is the DIP financing lender.

The facility will mature on the earliest of 35 days after the bankruptcy filing date if a final order has not been entered, June 30 and the closing of a sale of substantially all company assets.

Interest will be Base rate plus 650 basis points or Libor plus 750 bps.

A total of $7.5 million of the financing will be available to the company on an interim basis.

According to court documents, Sundevil has $100 million to $500 million in both assets and debt.

The company’s largest unsecured creditors are Paradigm Tax Group of Phoenix, with a trade claim in an undetermined amount, Maricopa County Treasurers Office of Arizona, with a $2.46 million taxes claim and Gila Bend Operations Co., LLC of Tampa, Fla., with a $1.03 million trade payable claim.

The company is represented by Drinker Biddle & Reath LLP.

Wayzata, Minn.-based Sundevil Power operates gas-fired power plants in Gila Bend, Ariz. The Chapter 11 case number is 16-10369.

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