Optim Energy gets extra time to file bankruptcy reorganization plan

Optim Energy LLC, which is looking at sales options for its two gas-fired power plants in Texas, on Feb. 3 was granted by its bankruptcy court an extended deadline of June 9 to file a chapter 11 reorganization plan, with a new deadline of Aug. 10 to win creditor acceptances of that plan.

Optim Energy, which last year sold its coal-fired power plant in Texas but retained its two gas-fired plants in the state, on Jan. 14 had asked its bankruptcy court for this extra time. Optim and its affiliated companies asked the U.S. Bankruptcy Court for the District of Delaware to extend the periods by approximately 120 days, which is what the court granted on Feb. 3.

The company told the court in the Jan. 14 filing: “Since entry of the Second Exclusivity Order ,the Debtors have devoted significant resources and efforts to, among other things, formulating potential restructuring strategies for the Debtors’ remaining principal assets, their interests in the Cedar Bayou Plant and the Altura Cogen Plant (together, the ‘Gas Plant Portfolio’), including the potential sale of the Gas Plant Portfolio under a chapter 11 plan of reorganization.

“The Debtors commenced a full marketing process for the Gas Plant Portfolio in November 2014, from which several interested parties submitted proposals to purchase the Debtors’ assets. The Debtors are in the midst of evaluating these proposals and engaging in further diligence discussions with certain parties, which will take additional time before coming to full conclusion, and will determine the final terms of any plan(s) the Debtors will file.”

The Optim companies entered chapter 11 protection in February 2014, and subsequently sold their money-losing Twin Oaks coal plant in Texas.

The two gas plants being marketed are:

  • Altura Cogen Plant: This is a natural-gas powered plant capable of producing 600 MW located in Harris County, Texas. The plant has been commercially operating since 1985 and is located within a complex of petrochemical facilities owned by Lyondell Chemical.
  • Cedar Bayou Plant: Cedar Bayou is a gas-fired plant capable of producing 550 MW located in Chambers County, Texas. Debtor Optim Energy Cedar Bayou 4 owns a 50% undivided interest and NRG Cedar Bayou Development owns the remaining 50% undivided interest. The Cedar Bayou Plant began operating in 2009. It is located within a complex of electric generation facilities owned by NRG Texas Power.
About Barry Cassell 20414 Articles
Barry Cassell is Chief Analyst for GenerationHub covering coal and emission controls issues, projects and policy. He has covered the coal and power generation industry for more than 24 years, beginning in November 2011 at GenerationHub and prior to that as editor of SNL Energy’s Coal Report. He was formerly with Coal Outlook for 15 years as the publication’s editor and contributing writer, and prior to that he was editor of Coal & Synfuels Technology and associate editor of The Energy Report. He has a bachelor’s degree from Central Michigan University.