Tonopah Solar Energy plan of reorganization effective as of Dec. 18

By Sarah Lizee

Olympia, Wash., Dec. 21 – Tonopah Solar Energy, LLC’s Chapter 11 plan of reorganization became effective on Friday, according to a notice filed with the U.S. Bankruptcy Court for the District of Delaware.

The plan was confirmed on Dec. 9, as previously reported.

Under the plan, the Department of Energy will receive $200 million in cash and a $100 million contingent note to be guaranteed by Cobra in full satisfaction of its loan claim.

Cobra Thermosolar Plants, Inc. and Cobra Energy Investments, LLC, an affiliate of ACS Servicios Comunicaciones y Energía SL, (collectively, Cobra) will fund Tonopah’s obligations under the plan through new debt financing and cash, and Cobra will own 100% of the company upon completion of the restructuring.

Interests granted under security documents will be released.

All other claims will remain unimpaired.

Santa Monica, Calif.-based Tonopah constructs, owns, and operates the Crescent Dunes Solar Energy Project. The company filed bankruptcy on July 30 under Chapter 11 case number 20-11884.

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