Corporate Law News

Government Accused of Wrongly Taking Over Nevada Solar Plant

Oct. 2, 2019, 9:41 PM

The U.S. Department of Energy was hit with a Delaware lawsuit Oct. 2 accusing it of trying to take over a billion-dollar Nevada solar plant by improperly declaring one of its operators defaulted on a loan guaranteed by the government.

The DOE backed a $700 million federal loan to Tonopah Solar Energy LLC in 2011 to help fund the Crescent Dunes project, according to the Chancery Court complaint filed by SolarReserve CSP Holdings LLC. SolarReserve owns 50% of Tonopah, which operates the plant, through several layers of LLCs and holding companies.

The government expressly waived all prior “events of default”...

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