Solar Trust of America LLC, which filed for bankruptcy earlier this month, has been approved to receive financing from Mason Capital Management LLC. The funding includes $25 million in working capital loans and $18.3 million in letters of credit, according to a bankruptcy court order cited by Bloomberg BusinessWeek.
Solar Trust of America, an Oakland, Calif.-based developer is building the 1 GW Blythe solar plant in California. As the company's bankruptcy case proceeds, the fate of the Blythe project remains uncertain. NextEra Energy has been repeatedly named as a potential buyer, but the company has yet to submit a bid, BusinessWeek says.
With the new round of loans from Mason Capital, Solar Trust of America is now expected to receive a longer window for selling its assets.