Sunedison JUL 5 2016 Imperial Valley App.Pdf
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16-10992-smb Doc 695 Filed 07/05/16 Entered 07/05/16 11:38:27 Main Document Pg 1 of 44 Hearing Date: [To Be Determined] Objection Deadline: [To Be Determined] SKADDEN, ARPS, SLATE, MEAGHER & FLOM LLP Jay M. Goffman J. Eric Ivester Shana Elberg Four Times Square New York, New York 10036-6522 Telephone: (212) 735-3000 Fax: (212) 735-2000 -and- James J. Mazza, Jr. (admitted pro hac vice) Louis S. Chiappetta (admitted pro hac vice) 155 N. Wacker Dr. Chicago, Illinois 60606-1720 Telephone: (312) 407-0700 Fax: (312) 407-0411 Counsel for Debtors and Debtors in Possession UNITED STATES BANKRUPTCY COURT SOUTHERN DISTRICT OF NEW YORK : In re: : Chapter 11 : SUNEDISON, INC., et al., : Case No. 16-10992 (SMB) : Debtors.1 : (Jointly Administered) : : 1 The Debtors in these chapter 11 cases, along with the last four digits of each Debtors’ tax identification number are as follows: SunEdison, Inc. (5767); SunEdison DG, LLC (N/A); SUNE Wind Holdings, Inc. (2144); SUNE Hawaii Solar Holdings, LLC (0994); First Wind Solar Portfolio, LLC (5014); First Wind California Holdings, LLC (7697); SunEdison Holdings Corporation (8669); SunEdison Utility Holdings, Inc. (6443); SunEdison International, Inc. (4551); SUNE ML 1, LLC (3132); MEMC Pasadena, Inc. (5238); Solaicx (1969); SunEdison Contracting, LLC (3819); NVT, LLC (5370); NVT Licenses, LLC (5445); Team-Solar, Inc. (7782); SunEdison Canada, LLC (6287); Enflex Corporation (5515); Fotowatio Renewable Ventures, Inc. (1788); Silver Ridge Power Holdings, LLC (5886); SunEdison International, LLC (1567); Sun Edison LLC (1450); SunEdison Products Singapore Pte. Ltd. (7373); SunEdison Residential Services, LLC (5787); PVT Solar, Inc. (3308); SEV Merger Sub Inc. (N/A); Sunflower Renewable Holdings 1, LLC (6273); Blue Sky West Capital, LLC (7962); First Wind Oakfield Portfolio, LLC (3711); First Wind Panhandle Holdings III, LLC (4238); DSP Renewables, LLC (5513); Hancock Renewables Holdings, LLC (N/A). The address of the Debtors’ corporate headquarters is 13736 Riverport Dr., Maryland Heights, Missouri 63043. 16-10992-smb Doc 695 Filed 07/05/16 Entered 07/05/16 11:38:27 Main Document Pg 2 of 44 DEBTORS’ MOTION FOR (I) AN ORDER AUTHORIZING AND APPROVING A PRIVATE SALE OF EQUITY INTERESTS IN IMPERIAL VALLEY SOLAR 2, LLC AND 88FT 8ME LLC; OR, (II) IN THE ALTERNATIVE, FOR (1) AN ORDER (A) AUTHORIZING CERTAIN DEBTORS’ ENTRY INTO THE STALKING HORSE AGREEMENT, (B) APPROVING BIDDING PROCEDURES AND STALKING HORSE BID PROTECTIONS IN CONNECTION WITH SALE OF ASSETS OF THE DEBTORS, (C) SCHEDULING AUCTION AND SALE HEARING, AND (D) GRANTING RELATED RELIEF; AND (2) THEREAFTER, AN ORDER (A) APPROVING THE SALE OF EQUITY INTERESTS IN IMPERIAL VALLEY SOLAR 2, LLC AND 88FT 8ME LLC FREE AND CLEAR OF ALL LIENS, CLAIMS, AND ENCUMBRANCES AND (B) GRANTING RELATED RELIEF SunEdison, Inc. (“SUNE”) and certain of its affiliates, the debtors and debtors in possession in the above-captioned cases (collectively, the “Debtors” and, together with their non- Debtor affiliates, “SunEdison” or the “Company”)2 hereby move (the “Motion”) this Court, pursuant to sections 105(a), 363(b), 363(f), 363(m), 503, 507, 541(a), 1107, and 1108 of Title 11 of the United States Code (the “Bankruptcy Code”), and Rules 2002, 6004, 9006, 9007, and 9014 of the Federal Rules of Bankruptcy Procedure (the “Bankruptcy Rules”), for entry of an order (the “Private Sale Order”) substantially in the form attached hereto as Exhibit A, authorizing SUNE and First Wind California Holdings, LLC (“FWCH,” and, together with SUNE, the “Seller Parties”) to sell and transfer 100% of the equity interests (such equity interests, collectively, the “Equity Interests”) in (1) Imperial Valley Solar 2, LLC (“IVS2”) and (2) 88FT 8ME LLC (“88FT” and, together with IVS2, the “Subsidiaries”) to DESRI MS2 Development, L.L.C. (the “Buyer”) via a private sale pursuant to, and in accordance with, that certain Purchase and Sale Agreement, dated as of July 1, 2016 (together with all related agreements, documents or instruments and all exhibits, schedules, and supplements to any of the foregoing, as the same may be subsequently amended or otherwise modified in accordance with 2 For purposes herein, the definition of “SunEdison” and “Company” does not include Terraform Power, Inc. (“TERP”) and Terraform Global, Inc., and each of their respective direct and indirect subsidiaries, unless otherwise provided. 2 16-10992-smb Doc 695 Filed 07/05/16 Entered 07/05/16 11:38:27 Main Document Pg 3 of 44 the terms thereof and hereof, the “PSA”, and the transactions described therein, the “Sale Transaction”), by and among the Seller Parties and Buyer, free and clear of all liens, claims, interests, and encumbrances (collectively, the “Liens”), with such Liens attaching to the proceeds of the Sale Transaction with the same validity, extent, and priority as had attached to the Equity Interests immediately prior to the sale or transfer. In support of the Motion, the Debtors rely upon and incorporate by reference the Declarations of (i) Patrick M. Cook, Vice-President – Capital Markets And Corporate Finance of SunEdison, Inc., in Support of Chapter 11 Petitions and First Day Pleadings (the “First Day Declaration”), filed with this Court on the Petition Date (as defined herein), (ii) Hy Martin of SunEdison, Inc., in Support of the Motion (the “Martin Declaration”) filed contemporaneously herewith, and (iii) Homer Parkhill of Rothschild, Inc. in Support of the Motion (the “Parkhill Declaration”) filed contemporaneously herewith. For the reasons stated herein and in the Declarations, the Debtors respectfully submit that approval of the Private Sale Transaction maximizes the value of the Equity Interests, avoids the risk of potentially substantial value degradation based on imminent project development deadlines and is otherwise in the best interests of the Debtors’ estates. However, in the event that the Court is unwilling to enter the Private Sale Order granting such relief, the Debtors request that in the alternative the Court enter (I) an order substantially in the form attached as Exhibit B hereto (the “Auction Sale Procedures Order”) (a) approving bidding procedures for an expedited auction process substantially in the form attached as Exhibit 1 to the Auction Sale Procedures Order, (b) approving the Buyer as the stalking horse bidder and the PSA as a stalking horse purchase agreement, in each case with respect to the sale of the Equity Interests, and (c) granting Buyer, as the stalking horse bidder, certain customary bid protections, including payment of a break-up fee and expense reimbursement, in each case as more fully described 3 16-10992-smb Doc 695 Filed 07/05/16 Entered 07/05/16 11:38:27 Main Document Pg 4 of 44 herein, and (II) an order (the “Auction Sale Order”) approving the Sale Transaction to the Buyer or Prevailing Purchaser (as defined herein) following the Auction (as defined herein), as applicable. In further support of the Motion, the Debtors, by and through their proposed undersigned counsel, respectfully represent:3 JURISDICTION AND VENUE 1. This Court has jurisdiction to consider this Motion under 28 U.S.C. §§ 157 and 1334. This is a core proceeding under 28 U.S.C. § 157(b). Venue of these cases and this Motion in this district is proper under 28 U.S.C. §§ 1408 and 1409. 2. The legal predicates for the relief requested herein are Bankruptcy Code sections 105(a), 363(b), 363(f), 363(m), 503, 507, 541(a), 1107, and 1108, Bankruptcy Rules 2002, 6004, 9006, 9007, 9014, and Rules 6004-1 and 6006-1 of the Local Rules (the “Local Bankruptcy Rules”) for the United States Bankruptcy Court for the Southern District of New York (the “Bankruptcy Court”) and the Amended Guidelines for the Conduct of Asset Sales, General Order M-383 of the Bankruptcy Court (the “Sale Guidelines”). BACKGROUND A. The Chapter 11 Cases 3. On April 21, 2016 (the “Petition Date”),4 the Debtors each commenced a case (the “Initial Chapter 11 Cases”) by filing a petition for relief under chapter 11 of the 3 The Debtors have actively engaged with the advisors to the lenders (the “DIP Lenders”) under the Debtors’ debtor in possession financing facilities and the advisors to the Committee in connection with the relief requested herein. Specifically, the Debtors provided drafts of the PSA, the Bidding Procedures, and this Motion to advisors to the DIP Lenders and the Committee and included various comments received from such advisors. The Debtors also provided other information to, and answered questions from, advisors to the DIP Lenders and the Committee, including with respect to the expedited timing of the sale of the Project. 4 For the avoidance of doubt, all references to “Petition Date” refer to the April 21, 2016 filing of the 26 debtors unless specified that it is the “June 1st Petition Date.” 4 16-10992-smb Doc 695 Filed 07/05/16 Entered 07/05/16 11:38:27 Main Document Pg 5 of 44 Bankruptcy Code, in the United States Bankruptcy Court for the Southern District of New York. On June 1, 2016, an additional six Debtors5 filed voluntary petitions for relief under the Bankruptcy Code (collectively with the Initial Chapter 11 Cases, the “Chapter 11 Cases”). The Debtors’ Chapter 11 Cases have been consolidated for procedural purposes only and are being jointly administered. 4. The Debtors continue to operate their businesses and manage their properties as debtors and debtors in possession pursuant to Bankruptcy Code sections 1107(a) and 1108. 5. On April 29, 2016 an official creditors’ committee (the “Committee”) was appointed for these Chapter 11 Cases by the Office of the United States Trustee for the Southern District of New York (the “United States Trustee”). No trustee or examiner has been appointed in the Debtors’ Chapter 11 Cases.