Optim Energy LLC told its bankruptcy court on Aug. 5 that the winner of an Aug. 4 auction for the coal-fired Twin Oaks power plant was Major Oak Power LLC with an offer of $126m.
Twin Oaks is a two-unit, 305-MW, lignite-fired plant located in Robertson County, Texas. When it sought Chapter 11 protection in February at the U.S. Bankruptcy Court for the District of Delaware, Optim Energy said that Twin Oaks and a burdensome lignite supply contract for the plant were major sources of its financial problems. Optim also owns two gas-fired power plants in Texas that aren’t for sale.
Major Oak Power is an affiliate of Blackstone Group LP that was in the early, pre-auction bidding for the plant.
Twin Oaks Power LLC was the second highest auction bidder at $121.5m and it will serve as the “Back-up Bidder” for the facility. Twin Oaks Power is an affiliate of energy investor ArcLight Capital Partners LLC.
An Aug. 7 hearing will be held before Judge Brendan Shannon to review the auction results, with the judge to at that point possibly approve the top bidder, depending on whether any creditor protests are lodged.