The Federal Energy Regulatory Commission on July 17 approved a change in control of three gas-fired power plants related to a bankruptcy case for Mach Gen LLC.
On Feb. 27, as amended on May 1, MACH Gen LLC and certain of its wholly-owned subsidiaries sought commission authorization for a disposition of jurisdictional facilities resulting from the cessation of a voting restriction with respect to the common voting equity securities of MACH Gen that were issued in connection with the restructuring of the applicants under a Chapter 11 bankruptcy plan.
For purposes of the application, the MACH Gen subsidiaries are: Millennium Power Partners LP (Millennium), New Athens Generating Co. LLC (New Athens), and New Harquahala Generating Co. LLC (New Harquahala).
The restructuring of applicants as contemplated under the bankruptcy plan was recently authorized by the commission in a separate decision.
- Millennium owns and operates the Millennium facility, which is a 326-MW (summer rating) natural gas-fired combined cycle plant located in Charlton, Mass.
- New Athens owns and operates the New Athens facility, which is a 945-MW (summer rating) natural gas-fired combined cycle electric generating plant located in Athens, New York.
- New Harquahala owns and operates the New Harquahala facility, which is a 1,092-MW (nameplate rating)/1,054-MW (summer rating) natural gas-fired combined cycle plant near Tonopah, Arizona.
Under the bankruptcy plan, Mach Gen’s second lien holders will now have control of the companies. The plan will take about $1bn in debt off the companies’ balance sheet. Three entities will ultimately hold more than 10% the New Equity Holdings in the companies: Silver Oak Capital LLC (Silver Oak); Deutsche Bank and ECP Polaris Ltd.; and Solus Entities and SOL.
Solus Entities include SOLA Ltd. (SOLA), Solus Core Opportunities Master Fund Ltd., and Ultra Master Ltd. Solus Entities are Cayman Island exempt corporations and hedge funds in the business of investing and trading in a diverse set of investment opportunities, including but not limited to those in the energy sector. SOL is a Delaware limited liability company with Citibank N.A. as its sole member.
The commission found in the July 17 approval order that this deal raised no vertical or horizontal market domination concerns in the regions where the three power plants are located.