Stirling Energy asset sale delayed till July 26; new bidder emerges

By Jim Witters

Wilmington, Del., July 10 - The trustee's sale of Stirling Energy Systems, Inc.'s remaining assets was delayed July 10 at the request of Echempower, Inc., which sought more time to put together a bid.

Judge Kevin J. Carey adjourned a hearing on the proposed $2.2 million sale to Michigan-based Stirling Biopower, Inc. during a hearing in the U.S. Bankruptcy Court for the District of Delaware.

Renchong Hu, president of Echempower of Richardson, Texas, said his company needs additional time to complete due diligence and put together financing.

Echmepower has lined up five potential investors, including venture capital firm Signal Lake Management LLC, according to a letter Hu wrote to the court.

He sought a delay to Aug. 10.

Carey adjourned the hearing until 3:30 p.m. ET on July 26.

No one objected to the postponement.

Susan M. Cook, representing Linamar Solar Systems, Inc., said the additional time would allow more discussion about her client's objection to the sale.

Linamar claims that certain intellectual property is jointly owned by Linamar and Stirling and cannot be sold without Linamar's consent.

If the Chapter 7 trustee wishes to convey the intellectual property to a buyer, the trustee must assume the contract, pay all existing defaults and provide adequate assurance that the buyer can perform under the contract in the future, according to the Linamar objection.

Linamar asserts that it is owed $19 million.

Cook said she is confident the parties can resolve the objection before the July 26 hearing.

Stirling Energy, a Scottsdale, Ariz.-based solar energy company, filed for liquidation through bankruptcy on Sept. 22, 2011. Its Chapter 7 case number is 11-12991.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.