Simple Explanation: Every energy project is set up under a single legal entity, e.g. LLC, where the project is funded by equity, debt and construction creditors as a project is developed/constructed. When SUNE sells a project it is selling only its equity interest in the LLC free and clear of all of its third party liens as equity owner. NRG's recent stalking horse bid of $144 million cash is for SUNE's equity in 2,093 MW of projects. SUNE must then repay any lender/creditor from whom it borrowed to fund its equity for those projects. To date, SUNE has PSA's for 4,528 MW of projects for $422.5 million in cash. Those funds will go to its DIP lenders until the $1.3 billion loans, accrued interest and expenses are repaid.
