Oya Renewables, a Boston and Toronto-based solar infrastructure developer founded in 2009, has initiated Chapter 11 bankruptcy proceedings in Delaware. The company faces financial obligations between $100-500 million, including $86.8 million in secured debt, while maintaining minimal cash reserves of just $58,000.
The company's downfall stems from multiple challenges, according to Chief Restructuring Officer John Shepherd. Key issues include delayed projects, ongoing litigation, and unsuccessful attempts to divest assets. Previous efforts to improve liquidity through fundraising from August 2022 to September 2023 proved unsuccessful.
The company's debt structure includes significant loans across its subsidiaries. Notably, Oya Renewables EquipmentCo LLC still owes $21 million from a $43 million loan, while Oya Renewables Yield-1 LLC maintains $23 million in outstanding principal from a $27 million borrowing. Recent protective advances totaling $7.1 million and an additional $825,000 this month failed to stabilize the situation.
A path forward has emerged through Radial Power LLC, which has stepped in as both a stalking horse bidder and debtor-in-possession (DIP) financier. Their involvement includes a $6 million post-petition financing package and a $30 million bid for select assets. The company plans to conduct an asset auction by late January.
While the main company entities have filed for bankruptcy protection, some affiliates, including corporate parents, remain outside the proceedings. The proposed sale to Radial Power, developed after extensive marketing efforts throughout the year, aims to maintain business value and facilitate an orderly asset transition.
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