Bankruptcy Judge Stresses "Speed" In Sale Process For Brilliant Energy, Cites "Fragile" Asset Base

A federal bankruptcy judge has told a trustee leading Brilliant Energy's Chapter 7 bankruptcy that "speed is key" in a sales process meant to preserve any value in Brilliant Energy's assets

The judge expressed concern that the value of the Brilliant Energy customer book will deteriorate over time, calling the asset base "fragile"

If the trustee has a proposed buyer, "don't think you need to run through some fancy bid procedures to make me happy," the judge told the trustee during a status conference today

While the judge said that he would like the trustee to blanket that the debtor is for sale, and that the process be fair and open, the judge said, "If you've got somebody ... ready to pay what you think is a fair price ... that is a real buyer with real money, and you want to say, 'OK this is who I want to sell to, it's subject to higher or better offers', I'm going to notice this out and we're going to have an auction in the virtual courtroom [on a prescribed date, for example, on two weeks notice], that's not going to offend me at all."

The judge said that he would look to the trustee's judgment that the market has been fairly tested and that the trustee has informed everyone, that the trustee thinks would be interested, of the sale

The trustee and DTE Energy Trading, Brilliant Energy's wholesale supplier which is in favor of a sale process, have both already fielded inquiries related to a sales process

The judge said that the sale process should not be drawn out for three months solely because the trustee thinks the court requires it

A status conference was scheduled for April 2.