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Dynegy auctioning two New York power plants worth 1,693 MW

 

Birmingham, Alabama (Platts)–25Sep2012/524 pm EDT/2124 GMT 

Dynegy said Tuesday that it is in the process of soliciting bids for two power plants that it operates in New York in a public auction under the jurisdiction of a bankruptcy court.

 

Bids are due November 1 for the 1,200-MW Roseton plant and the 493-MW Danskammer plant. The Roseton plant is currently coal-fired after previous conversions from other fuels, and the Roseton plant burns natural gas and oil. Proceeds from the sale will benefit creditors and lease note holders, Dynegy spokeswoman Katie Sullivan said.

 

The auction will take place under the jurisdiction of the US Bankruptcy Court for the Southern District of New York, Poughkeepsie Division. Blackstone Advisory Partners will handle the auction.

  

Fifty percent of the proceeds of the sale will go to lease note holders, with the other 50% to go to all other unsecured creditors. Under Dynegy’s plan of emergence, the estate has $200 million in cash to disburse to creditors, but most of the creditors will be repaid with equity, thus wiping out $4 billion of debts. The overall compensation will be a small percentage of what is owed creditors. PSEG, which has a $110 million tax indemnity claim, will be repaid a percentage of that in the form of equity.

 

Meanwhile, three environmental groups have asked New York regulators to request an analysis of reliability issues and infrastructure upgrades that would be needed if the two plants in Newberg, New York, are retired. The organizations cited concerns that it could have problems if Dynegy is unable to find a buyer for the two generating stations and they are shut down.

  

Source: http://www.platts.com/RSSFeedDetailedNews/RSSFeed/ElectricPower/3340470

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