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FloWind assets eyed
1 August 1997
Although bidding for assets has yet to start in the FloWind Corp bankruptcy case, two sets of wind companies are already after the spoils. The first to emerge in this Chapter 11 case, filed on June 16, was Premier, a new wind consortium owned 75% by NEG Micon of Denmark and 25% by Renewable Energy Systems (RES) of the UK, with funding from a major Japanese trading company. By the end of a hearing on July 25, the US Bankruptcy court had approved Premier paying FloWind a total of $373,600 in financing. The "holding cash" was to allow FloWind to keep going, presumably while it sells its assets in the Altamont Pass and Tehachapi. The newly formed consortium was mentioned when FloWind first announced its bankruptcy, but only as an "unnamed European turbine manufacturer and its construction partner" (Windpower Monthly, July 1997). Premier hopes to gain an advantage in buying assets, but representatives for Enron Wind Corp, formerly Zond, on July 25 argued that the assets should go to the highest bidder. "It's still a very new case," says Linda Sorensen, the attorney for FloWind. "A lot of the parties will be sitting down and discussing reorganising or an alternative." Former FloWind executive Bob Lynette has resigned from the company and from Advanced Wind Turbines (AWT), owned 81% by FloWind, because he is a major unsecured creditor. AWT, of Redmond Washington, was not included in the bankruptcy filing.
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