Bankrupt Developer Solar Trust Of America Receives New Loans


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.

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