Optim Energy LLC said in a May 6 filing with its bankruptcy court of an amended disclosure statement that it has gotten no satisfactory bids for its two gas-fired power plants in Texas, so it now wants to reorganize itself and its related companies.
Optim and related companies in Chapter 11 bankruptcy protection had initially aimed to sell the plants for a minimum of $355 million, but said they got no acceptable bids. Company creditors have a June 15 deadline to vote on this reorganization plan, which is being handled in the U.S. Bankruptcy Court for the District of Delaware.
“The Reorganizing Debtors have now determined, in consultation with their advisors, independent directors and the Consultation Parties, that the best path forward is to terminate the sale process and instead seek Confirmation of the Plan,” said the amended statement from the companies.
The Optim plants that were up for sale are:
- The Altura Cogen Plant is a natural gas-fired plant capable of producing 600 MW, located in Harris County, Texas. It sells the majority of its energy in the ERCOT market. The plant is owned by Debtor Altura Cogen LLC. The Altura Cogen Plant has been commercially operating since 1985 and is located within a complex of petrochemical facilities owned by Lyondell Chemical Co. Limited objections by Lyondell to the sale plan have been resolved.
- The Cedar Bayou Plant is a gas-fired plant capable of producing 550 MW, located in Chambers County, Texas. It operates in ERCOT’s Houston Zone. Debtor Optim Energy Cedar Bayou 4 LLC owns a 50% undivided interest in the Cedar Bayou Plant and NRG Cedar Bayou Development Co. LLC owns the remaining 50% undivided interest. The Cedar Bayou Plant began operating in 2009. It is located within a complex of generation facilities owned by NRG Texas Power LLC, which owns the real property upon which the Cedar Bayou Plant is situated.