Renovate America Pushes Back Sale To Review Creditor Deal law360.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from law360.com Daily Mail and Mail on Sunday newspapers.
Bankrupt home improvement lender Renovate America Inc. pushed off a looming fight with unsecured creditors over its Chapter 11 sale terms Friday after its bankruptcy lender and stalking horse bidder agreed to add one week and $5 million to its original $18 million interim loan deadline.
The former property-assessed clean energy program administrator plans to sell off assets via Chapter 11, but PACE securitizations through its bankruptcy-remote trusts will continue to be backed by homeowner ad valorem assessments.
[December 28, 2020]
KBRA Comments on Renovate America s Chapter 11 Filing
Kroll Bond Rating Agency (KBRA) releases commentary following an announcement on December 22, 2020 that Renovate America Inc. (Renovate), a Property Assessed Clean Energy (News - Alert) (PACE) originator, has filed for bankruptcy under Chapter 11 of the US Bankruptcy Code.
Renovate has sponsored thirteen PACE ABS transactions that have outstanding KBRA ratings. The ABS (News - Alert) transactions are largely insulated from the financial performance of Renovate as the company only served as the Program Administrator for these transactions, has limited interaction with the underlying obligors, and has little control over the collateral performance. The servicing of the PACE assessments, including billing and collections, is performed by David Taussig & Associates, which serves as the Assessment Administrator.
San Diego-based Renovate America, which provided financing for solar and other energy saving home improvements, filed for Chapter 11 bankruptcy protection earlier this week and plans to sell off assets to help repay creditors.
The once high-flying company said it was derailed in part by legislation