Lehman-Backed SkyPower Files for Bankruptcy

NEW YORK, Aug 12 (Reuters) – SkyPower Corp, a Canadian developer of renewable energy projects owned by bankrupt Lehman Brothers Holdings Inc (LEHMQ.PK), said on Wednesday that it has filed for court protection under the Companies’ Creditors Arrangement Act.

SkyPower said it was seeking to quickly sell its assets through a court-approved process and that several potential bidders have expressed interest in a deal.

SkyPower said it sought court protection amid uncertainty over the last few months about its “strategic direction” due to the bankruptcy of Lehman, which is the company’s principal shareholder.

SkyPower said it had a commitment of funding for US $15 million that will allow it to transition the business through the sale process.

Lehman Brothers Private Equity had bought a 50 percent equity stake in SkyPower in June 2007.

SkyPower had interests in developing more than 50 wind and solar projects in Canada at the time of the Lehman investment.

Lehman sought bankruptcy protection in U.S. courts on Sept. 15, 2008, in the largest U.S. bankruptcy in history, listing assets of $639 billion. The bank has been in the process of unwinding itself.

(Reporting by Emily Chasan; editing by Carol Bishopric)