September 1, 2016 Read More →

Pennsylvania City Is Offered $230-$535 million for Aging Coal Plant It Owes $606 Million On

Darren Sweeney for SNL:

GE Capital US Holdings Inc.’s Homer City Generation LP has received “multiple bids” for its market-challenged coal plant.

Homer City Generation operates the three-unit, 1,907-MW coal plant in Indiana County, Pa. GE Capital US Holdings owns a 95% common equity interest in the plant, and MetLife Inc. holds a minority stake.

Homer City, in an Aug. 17 update to its strategic review process, revealed that potential financial and strategic buyers submitted bids for the plant ranging from $230 million to $535 million in implied total enterprise value. The bids “vary widely” in terms of structure, especially as it relates to the use of debt and equity, third-party credit support and capital contributions, the company said.

However, Homer City said noteholders have informed the company that “they do not consent to any of the current bids received and indicated that the total enterprise values do not correlate directly to recoveries that could be realized on the notes.”

Homer City has outstanding secured notes of approximately $606 million tied to the plant, the company wrote.

The update comes as Homer City revealed that it continues to lose money and has renewed concerns about the ability to meet its financial commitments in response to challenging market conditions.

Full article ($): Homer City pushes forward with sale of money-losing coal plant

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