Noble Environmental Receives Bankruptcy Court’s Approval for Chapter 11 Plan

by San Antonio Attorney

Noble Environmental Power LLC, which filed for Chapter 11 bankruptcy in September, has received court approval for its emergence plan.

The renewable energy company’s plan was confirmed by Judge Kevin Gross on December 9.  The plan allows its investor Michael Dell to get a hundred percent stake in the newly restructured wind-energy business, the court documents show.

The Chapter 11 reorganization plan is going to pay back almost all of the company’s creditors in full, which includes its general unsecured creditors.

MSD Capital, the investment company of Dell, was created in 1998 to wholly administer the finances of billionaire Michael Dell and also his family.

Dell, who is the CEO and chairman of the computer company Dell, is worth $19.9 billion according to reports.  He is one of the richest people in America.  Recently, he completed a $60 billion agreement to buy EMC Corp., the biggest technology merger of all time.

J.P. Morgan Chase & Co., which holds a 29% stake in Noble Environmental Power, and the Canada Pension Plan Investment Board, which holds 14.3% stake in the company, are going to see their equity stakes eliminated under the agreement.

Noble filed for bankruptcy September with the intention to tender 100% control of the company to MSD Capital.

Noble, which started in 2004, is a parent company for 7 wind parks in Texas and New York, capable of providing 726 megawatts of renewable energy.  The company’s units, which operate and own the 7 wind farms, are not included in the bankruptcy filing.

One of Noble’s very important assets is the $691 million net operating losses, according to court documents.  The new company can utilize that amount to offset taxes in the future.

A Chapter 11 bankruptcy plan is meant to make the company stronger than before it declared bankruptcy.  A Debt Relief Attorney helps in preparing a reorganization plan, which is subject to the approval of a bankruptcy judge.

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