Business & Finance
Business and Finance
Business and Finance
Tue, January 4, 2011
Mon, January 3, 2011 BostonGen Completes Sale to Constellation Energy with FERC Approval
NEW YORK--([ BUSINESS WIRE ])--EBG Holdings, the parent of Boston Generating, LLC (aBostonGena or the aCompanya) announced today that the Federal Energy Regulatory Commission (aFERCa) issued an order on December 22, 2010 approving the sale of the Companya™s assets to Constellation Energy (aConstellationa) (NYSE: CEG) for approximately $1.1 billion. All necessary regulatory approvals required for completion of the transaction have been issued and the closing of the sale has now occurred.
"The completion of the sale of the assets to Constellation brings us one step closer to closure in the BostonGen bankruptcy proceedings"
Under terms of the agreement, Constellation acquired BostonGena™s five power plants located in the Boston area: four natural gas fired plants, including Mystic 8 and 9 (1,580 megawatts), Fore River (787 megawatts), Mystic 7 (574 megawatts); and a fuel oil plant, Mystic Jet (9 megawatts).
As part of its Chapter 11 sale process previously announced on August 18, 2010, BostonGen entered into an asset purchase agreement with "stalking horse" bidder Constellation for the 2,950 MW fleet, the third largest power generating portfolio in the New England region. On November 24, 2010 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.
aThe completion of the sale of the assets to Constellation brings us one step closer to closure in the BostonGen bankruptcy proceedings,a Said Mark Sudbey, Chief Executive Officer of US Power Generating Company, EBG Holdingsa™ parent company.
About USPowerGen
USPowerGen, through its subsidiary Astoria Generating Company Holdings, L.L.C. owns and operates power generation facilities in New York City with a total capacity of over 2,300 megawatts. This subsidiary sells energy and capacity into the NYISO deregulated market, representing generation sufficient to serve approximately 20% of the overall load in New York City. More information regarding USPowerGen can also be found at [ www.uspowergen.com ].
