11. Equity Method Investment in Affiliate

In December 2012, the Predecessor’s Board of Directors approved the distribution of the equity interest in HA EnergySource to the shareholders effective December 31, 2012. HA EnergySource’s only asset is an equity interest in EnergySource , a developer of geothermal projects in California. Prior to and as part of the transaction, the Board approved a $3.4 million capital commitment to HA EnergySource to be used by HA EnergySource for general corporate purposes, future investments or dividends to HA EnergySource owners. Such amount was included in accounts payable and accrued expenses at December 31, 2012. Through March 31, 2013, the Predecessor has paid $1.6 million of this obligation and the remaining amount of $1.8 million at March 31, 2013 is included in accounts payable and accrued expenses in the condensed consolidated balance sheet. In addition, in respect of the distribution of its equity interest in HA EnergySource, the Predecessor recorded a dividend as a reduction in equity totaling $3.9 million which represents the $3.4 million capital contribution plus the carrying value of HA EnergySource of $0.5 million. Following the distribution, the Predecessor no longer has an equity ownership in HA EnergySource or EnergySource.

For periods prior to August 2012, the Predecessor accounted for its investment in HA EnergySource using the equity method of accounting. In August 2102, HA EnergySource redeemed all outside interests in HA EnergySource not previously owned by the Predecessor and HA EnergySource became a wholly owned and consolidated subsidiary of the Predecessor.

The following is a summary of the financial position of EnergySource as of December 31, 2012, accounted for using the equity method:

The following is a summary of the operating results of EnergySource for the three months ended December 31, 2012, accounted for using the equity method: