Wind Energy Company Noble Environmental Files Chapter 11 Bankruptcy

by San Antonio Attorney

Noble Environmental Power LLC, a renewable energy company, sought for bankruptcy protection on Sept. 15 in a restructuring plan that turns debt into equities.

The Chapter 11 reorganization plan involves granting exclusive control of the Centerbrook, Conn. to Dell Inc. Chairman and MSD Capital, an investment operation of billionaire Michael Dell.

MSD Capital owns 54% of the energy company and will receive full ownership in the newly reorganized company. In return, the investment company is going to reduce about $21.5 million, or 10%, of Noble’s $215 million debt, based on the statement of Noble CEO Kay McCall.

MSD Capital started in 1998 as private investment firm operating using the funds of Michael Dell together with his family.

Dell is estimated to be worth almost $20 billion and is ranked as the 20th wealthiest American by the Forbes magazine.

The bankruptcy deal eliminated equity ownership of J.P. Morgan Chase & Co. and Canada Pension Plan Investment Board.

Noble was founded in 2004 as a holding company for 7 wind parks in Texas and New York, which can generate 726 MW of energy. The company’s subsidiaries, which operate and own the 7 wind farms, were not included in the bankruptcy filing.

Some of the most important assets of the company, as state in court documents, are about $691 million net operating losses (NOL), which can generally be utilized to recover previous tax payments.

Noble is aiming to leave bankruptcy as soon as possible. It hopes complete its Chapter 11 case before the year ends.

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