Renewables developer SkyPower seeks restructuring, expects sale

SNL Power Week West August 17, 2009

Canadian wind energy developer SkyPower Corp. said Aug. 12 that it has filed for restructuring under Canada’s Companies’ Creditors Arrangement Act due to the bankruptcy last year of its principal shareholder, Lehman Brothers Holdings Inc.

“There are several potential bidders who have expressed interest in purchasing SkyPower’s assets,” SkyPower President and CEO Kerry Adler said in a news release. “We expect a vibrant process to maximize value for our stakeholders and preserve the business as a going concern for the employees, customers and suppliers.”

The company has several projects under development in Canada. The 27-MW Fermeuse Wind Power Project, near a village south of St. John’s, Newfoundland, was granted commercial in-service certification on June 30.

Others include the 30-MW Digby Neck Wind Power Project, under development in Nova Scotia, and the 64.5-MW Byran Wind Project, near Picton, Ontario, one of six projects from five independent power producers awarded long­ term contracts from the Ontario Power Authority earlier this year.

SkyPower and a partner, SunEdison LLC, are also working on the First Light solar park in Ontario, which is expected to be able to produce up to 19 MW when it is completed later this year.

SkyPower has a partnership with a company in India, Pekon Electronics Ltd., to develop large-scale wind energy facilities, and in Panama, with a company called Panama Green Energy Inc., to develop hydroelectric projects.

As part of the restructuring, SkyPower said it has received a commitment for funding of $15 million to get it through the sale process.

SkyPower is not the only Canadian renewables developer to run into financial troubles, though its situation may be due to the problems of its shareholder. Alberta-headquartered EarthFirst Canada Inc. in November 2008 sought creditor protection, and some of its developments have been sold off.