Power cut as Boston Generating files for bankruptcy

Boston Generating, which holds the third largest power generating portfolio in the New England region, filed for bankruptcy on 18 August in the southern district of New York. The New England power generator has almost $2 billion in debt, including $1.13 billion in first lien loans, a $250 million first lien synthetic letter of credit, $350 million in second lien loans and a $70 million revolving loan.

The company intends to continue business operations during bankruptcy proceedings and is seeking a sale of it assets under section 363 of the US bankruptcy code.

Baltimore based Constellation Energy Group announced on 9 August that it had signed an asset purchase agreement to acquire five power plants in the New England region from Boston Generating for approximately $1.1 billion. Constellation Energy Group’s offer will be the so-called stalking horse bid which others will have to beat if they wish to acquire Boston Generating’s assets during the bankruptcy proceedings.