Second creditor files motion over Shepherd’s Run developer’s finances

COPAKE — A Brazilian buyout fund has filed a motion in Delaware Chancery Court to intervene in a case involving concerns about Hecate Energy LLC’s financial solvency.

LCM Fund, a creditor to Hecate, filed a motion on Aug. 26, following a motion brought in the same court by another creditor, NEC VI, which loaned Hecate $82 million and which is seeking a retraining order against the Chicago-based developer of solar, wind and energy storage projects.

LCM Funds states in its motion that “Hecate Energy is in default under their loan agreements.”

Last month, opponents of the Shepherd’s Run solar project asked New York State regulators to put a hold on a pending application for a permit for a 42 megawatt solar installation in Copake because of new concerns raised about the company’s financial solvency.

Since then, additional public comments have been filed by area residents who expressed concern about Hecate’s financial status and its ability to deliver on mitigation strategies related to the project now that two separate lender groups are in litigation over the company’s finances.

Matt Levine, the Shepherd’s Run project manager, said in a statement after the motion was filed for a restraining order that Hecate remains committed to Shepherd’s Run, adding that the company “denies that NEC’s claims and allegations have merit.”

The project has been controversial for the rural hamlet’s residents since it initially was discussed in 2017 when it was planned as a 60-megawatt solar farm to be located near the intersection of Routes 23 and 7. In February 2024, the state granted a motion from the Town of Copake to dismiss the application, and Hecate regrouped, filing again last December.

Since then, state regulators have issued two notices of incomplete application. On June 27, ORES found Hecate’s most recent application deficient in eleven areas. The company has resubmitted its application, which is pending.