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Bankruptcy Court Approves Sale of Boston Generating to Constellation Energy

^{Published on 2010-11-24 15:25:27 - Market Wire}
 

NEW YORK--([ BUSINESS WIRE ])--EBG Holdings, the parent of Boston Generating, LLC (aBostonGena or the aCompanya) today announced that Judge Shelley C. Chapman of the United States Bankruptcy Court for the Southern District of New York approved the sale of the Companya™s assets under Section 363 of the United States Bankruptcy code to Constellation Energy (aConstellationa) (NYSE: CEG).

"We are pleased to have received the Courta™s approval to move forward with the sale of our BostonGen assets to Constellation"

BostonGen previously entered into an asset purchase agreement with Constellation for its 2,950 MW fleet, the third largest power generating portfolio in the New England region. Under the terms of the asset purchase agreement, Constellation agreed to purchase BostonGena™s assets for approximately $1.1 billion.

Approval of the Federal Energy Regulatory Commission is necessary to complete the transaction.

"We are pleased to have received the Courta™s approval to move forward with the sale of our BostonGen assets to Constellation," said Mark Sudbey, Chief Executive Officer of US Power Generating Company, EBG Holdings parent company. aThis transaction clears the path for a new future for our business and provides Constellation with a state of the art, clean, energy efficient gas fired portfolio.a

Constellation is a leading supplier of energy products and services to wholesale and retail electric and natural gas customers. It owns a diversified fleet of generating units located in the United States and Canada, totaling approximately 9,000 megawatts of generating capacity.

About BostonGen

BostonGen, a subsidiary of EBG Holdings LLC, owns and operates over 3,000 MW of generation in Massachusetts. The Company sells energy and capacity in the ISO-New England deregulated market and owns generation sufficient to serve approximately 50% of the overall load in the Boston metropolitan area.