Stirling Energy trustee seeks court approval of assets, NTR settlement

By Lisa Kerner

Charlotte, N.C., June 19 - Stirling Energy Systems, Inc. Chapter 7 trustee Charles M. Forman asked the court to authorize his sale of the company's assets and to approve a settlement with NTR Solar Holdings Ltd. in connection with the sale, according to a Tuesday filing with the U.S. Bankruptcy Court for the District of Delaware.

A hearing is set for July 10.

Of the 30 potential purchasers that have contacted the trustee, eight entered into non-disclosure agreements and two made offers, the filing said.

The proposed purchaser, with the higher offer, would pay $2.2 million under the terms of the asset purchase agreement to acquire Stirling's remaining assets which includes all raw materials, service parts, packaging, finished goods inventory, work-in-progress, other inventory, owned tooling, tangible personal property, purchased intellectual property, documents and supplies.

Without approval of the settlement with NTR Solar, it is unlikely that any distribution would be available for other creditors given NTR Solar's secured claim of about $22.4 million, the filing said.

Under the term sheet, NTR Solar and the trustee agree on distribution of the proceeds from the sale of the remaining assets. NTR Solar will receive 80% of the first $1 million of the remaining balance on account of its secured claim and the debtor's estate will receive 20%. NTR Solar would receive 90%, and the debtor's estate 10% of any remaining balance in excess of $1 million on account of its secured claim.

If the sale of the remaining assets is not approved by the court, NTR Solar will pay the trustee $250,000 for a release of all claims that the debtor's estate may be able to assert against NTR Solar or its affiliates.

As previously reported, Stirling Energy filed for Chapter 7 bankruptcy for liquidation on Sept. 22 in the U.S. Bankruptcy Court for the District of Delaware after it failed to receive any bona fide offers for the purchase of the company and or leads would result in a purchase offer.

Stirling is a Scottsdale, Ariz.-based solar energy company. Its Chapter 7 case number is 11-12991.

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