Northampton Generating Files for Bankruptcy, Citing Rising Fuel Costs
Northampton Generating Co., owner of a 112 megawatt electric generation facility in Northampton, Pennsylvania, filed for bankruptcy protection, citing increases in fuel costs.
The company listed both assets and debt in the range of $100 million and $500 million each in Chapter 11 documents filed today in U.S. Bankruptcy Court in Charlotte, North Carolina.
The company’s “financial performance in recent years has been worse than expected as a result of rising fuel costs,” Warren MacGillivray, president of Northampton, said in court papers. “Fuel costs are up over 40 percent since 2005 primarily to increases in the cost to transport fuel needed to operate the facility,” MacGillivray said.
The company hasn’t been able to make payments on junior bonds since Sept. 2009 or about $22 million in certain management expenses in the past few years, according to court papers.
The case is: In re Northampton Generating Co., 11-33095, U.S. Bankruptcy Court, Western District of North Carolina (Charlotte).
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