United States

United States

Final reorganisation step in sight

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The planned repowering of FloWind's California wind farms is one step closer. On April 24, the US Bankruptcy Court in Santa Rosa, California approved the latest "disclosure" statement by WindCo and bankrupt FloWind, which are both backing a repowering plan. The new statement was filed on April 22, along with a slightly changed reorganisation plan.

WindCo consists of major US energy company FPL, wind turbine maker NEG Micon of Denmark, and Britain's Renewable Energy Systems, a wind farm developer. The next and presumably final step towards repowering -- court approval of the plan -- cannot happen until late May at the earliest since bankruptcy law requires at least 28 days' notice for such a hearing. No date had been set in late April.

In the reorganisation plan, those with general unsecured claims have a new option -- they can now get corporate shares issued by the reorganised company, or cash. In addition, the new disclosure statement reveals some tantalising facts. FloWind is writing off its equity investments -- as of last December 31 -- in both Advanced Wind Turbines Inc (AWT), the turbine manufacturer 81% owned by FloWind, and Advanced Blade Manufacturing Inc (ABM), wholly-owned by FloWind.

AWT and ABM have millions of dollars in debt. The disclosure statement notes too that AWT's inventory of wind turbines, destined for an Indian purchaser who then could not pay, "may be encumbered by a warehouseman's lien to secure unpaid packing and storage charges."

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