Noble Environmental Power is to financially restructure having voluntarily filed for reorganization under Chapter 11 of the US bankruptcy code in a Delaware court.
The company and Paragon Noble, which currently owns a controlling interest in Noble Environmental Power, have agreed that debt owed to Paragon Noble will be extended and a portion of the debt will be converted to equity.
Upon completion of the proceeding, Paragon Noble will own 100% of the restructured Noble Environmental Power.
The financial restructuring is expected to be completed by the end of 2016 assuming various regulatory and other approvals are obtained as anticipated, the company said.
Noble Environmental Power, a holding company, is the only legal entity involved in the proceeding and none of the Noble companies that own, operate or manage its seven wind farms in New York and Texas are involved.
Payments to all vendors and suppliers providing goods and services to the wind farms will continue to be made in the ordinary course of business, the company said.
Noble Environmental Power chief executive Kay McCall said: “NEP is pleased to be moving forward with a financial restructuring that will strengthen our company’s financial position by reducing long-term debt and enhancing financial flexibility, putting us in a better position to continue to supply clean energy to customers.
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