Solar Trust files plan of liquidation, associated disclosure statement

By Jim Witters

Wilmington, Del., Aug. 24 - Solar Trust of America, LLC filed its plan of liquidation and associated disclosure statement on Aug. 24 with the U.S. Bankruptcy Court for the District of Delaware.

Under the plan, the net proceeds of any remaining assets and recoveries from causes of action will be pooled in a liquidation trust and distributed to holders of allowed claims.

As previously reported, Solar Trust sold its Palen and Blythe solar array projects in California and reached settlement agreements with MMR Group, Inc. and with Chevron Energy Solutions Co. over disputed claims.

A hearing on approval of the disclosure statement is scheduled for 10 a.m. ET on Sept. 28.

Treatment of creditors

Under the proposed plan, treatment of creditors includes

• Holders of priority non-tax claims, miscellaneous secured claims and the Chevron administrative claim will be paid in full;

• Recoveries for holders of Chevron unsecured claims, general unsecured claims and Solar Millenium AG claims are undetermined, because they are based on the liquidation value of the liquidation trust assets; and

• Subordinated claims, interdebtor claims and equity interests will receive no recovery.

Implementation of the plan

After the plan effective date, all assets and liabilities of the debtors will be pooled, and any liabilities will be considered the obligation of the substantively consolidated debtors.

Substantive consolidation will reduce administrative expenses and eliminate the need to determine professional fees and other claims on a case-by-case basis, Solar Trust wrote in its disclosure statement.

If the court denies the substantive consolidation, the debtors plan to disburse recoveries on a debtor-by-debtor basis.

Solar Trust, an Oakland, Calif.-based unit of solar company Solar Millennium AG, filed bankruptcy on April 2. Its Chapter 11 case number is 12-11136.

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