Pine Gate Renewables, LLC, a utility-scale solar farm developer, is asking a bankruptcy court for permission to pay up to $168.1 million to critical project vendors, arguing that the payments are essential to preserve the company's operations and estate value during its Chapter 11 restructuring.
The Asheville, North Carolina-based company filed an emergency motion on November 6, 2025, in the United States Bankruptcy Court for the Southern District of Texas, Houston Division (Case No. 25-90669), seeking authority to immediately pay $131.2 million to essential vendors within the first 21 days of its bankruptcy case, with the full $168.1 million available upon final court approval. The request represents nearly half of the company's approximately $344 million in total prepetition accounts payable to trade creditors.
Pine Gate Renewables, which has developed, constructed, and operated numerous solar projects over the past nine years, filed for Chapter 11 protection on November 6, 2025, alongside several affiliated debtors. The company cited liquidity constraints that resulted in overdue payments to certain critical vendors, creating what it described as a risk of "delaying essential project operations and harming the Debtors' businesses."
"In the period leading up to the Petition Date, the Debtors were closely managing their liquidity, which resulted in overdue payments to certain Critical Project Vendors," the company stated in its filing. "This situation poses a risk of delaying essential project operations and harming the Debtors' businesses."
The motion identifies six categories of vendors deemed critical to the company's ongoing operations: Engineering, Procurement, and Construction (EPC) Services Providers; Subcontractors and Independent Engineering Services Providers; Specialty Solar Component Suppliers and Manufacturers; Specialty Solar Services and Technology Providers; Operating Projects Maintenance Providers; and Interconnection Services Providers.
According to the filing, the Critical Project Vendors "provide goods and services that are generally proprietary or significantly integrated into the Debtors' businesses and operational systems such that the Debtors cannot easily replicate or replace the goods and services procured from the Critical Project Vendors."
The company emphasized the potential consequences of vendor disruption, stating: "Any disruption in the Debtors' timely receipt of essential goods and services would significantly impact their ability to develop, complete, and operate projects, thereby undermining a substantial source of revenue for their estates. Further, operational interruptions could harm the Debtors' business relationships, undermine their market reputation, and jeopardize critical revenue streams."
Pine Gate Renewables also raised concerns that certain vendors may assert statutory liens against the company's property if prepetition amounts remain unpaid. "Due to the nature of their business and the work that they perform for the Debtors, certain Critical Project Vendors may have the ability to claim that prepetition amounts owed to them are secured by statutory liens on the Debtors' property," the motion states.
To qualify for payment, vendors must agree to continue supplying goods and services on terms equal to or better than those offered in the six months before the bankruptcy filing. The company is requiring many vendors to sign formal "Vendor Agreements" that commit them to maintain customary trade terms, waive certain claims including those under Section 503(b)(9) of the Bankruptcy Code, and maintain confidentiality about the agreement terms.
The motion includes substantial oversight provisions, particularly for larger payments. For debtor entities outside certain designated "silos," the company must obtain prior written consent from its DIP lenders before paying any Critical Project Vendor claim exceeding $500,000 during the interim period or $1 million following final court approval.
The company's filing is supported by legal arguments under Section 363(b) of the Bankruptcy Code, which authorizes debtors to use estate property outside the ordinary course of business when justified by sound business reasons. Pine Gate Renewables also invoked the "CoServ test," established by the Fifth Circuit bankruptcy court, which permits preplan payment of prepetition claims when the debtor must deal with the claimant, the harm from not dealing with them is disproportionate to the claim amount, and no practical alternative exists.
"Payment of the Critical Project Vendor Claims meets each element of the CoServ court's standard," the filing argues. "First, any further disruptions of the Debtors' operations that result from non-payment of such claims would cost the Debtors' estates substantial amounts in lost revenues. The harm and economic disadvantage that would stem from the Debtors' failure to pay the Critical Project Vendor Claims is grossly disproportionate to the amount of the prepetition claims that would have to be paid."
Concurrently with the vendor payment motion, Pine Gate Renewables filed a separate motion seeking authority to obtain approximately $248 million in new money superpriority postpetition financing through a debtor-in-possession (DIP) facility. The DIP financing, if approved, would provide additional liquidity for the company to continue operating during the bankruptcy proceedings.
The company's principal debtor entities include Pine Gate Renewables, LLC and Blue Ridge Power, LLC. Although Blue Ridge Power is winding down its operations, four PGR-owned projects currently serviced by BRP are expected to continue, though BRP will no longer be involved with them going forward.
A hearing on the emergency motion is scheduled for November 10, 2025, at 1:00 p.m. Central Time in Courtroom 402 at the federal courthouse in Houston. The court will consider whether to grant interim relief allowing the initial $131.2 million in payments, with a final hearing to follow for the full $168.1 million authorization.
The case is being handled by Judge Lopez in the Houston Division of the Southern District of Texas Bankruptcy Court. Pine Gate Renewables is represented by Latham & Watkins LLP as lead counsel and Hunton Andrews Kurth LLP serving as local Texas counsel.
The company's filing includes detailed reservations of rights, making clear that "nothing in this Motion is intended to be nor shall be deemed" an admission regarding the validity of any claims, a waiver of the debtors' rights to dispute claims, or authorization to assume any contracts under Section 365 of the Bankruptcy Code.
If vendors accept payment but later fail to provide goods or services on the agreed-upon customary trade terms, the company reserves the right to recover those payments as improper postpetition transfers and to reinstate the vendors' prepetition claims.
This article was prepared using Stretto Conductor, our new AI-powered assistant that's here to help. Stretto Conductor was able to create this summary of a 26 page court filing in less than a minute. Always review the underlying docket filings for accurate information. The information and responses generated by Stretto Conductor may contain errors or inaccuracies and should not be relied upon as a substitute for professional or legal advice.