Constellation Energy Group Inc.’s plan to buy Boston Generating LLC’s assets for $1.1 billion should be delayed for more review, Fortress Investment Group LLC said.
Fortress, one of Boston Generating’s creditors, filed an emergency motion in New York bankruptcy court today that seeks to postpone a Sept. 27 court hearing at which Boston Generating will ask a judge to approve an auction of its assets.
Fortress and CarVal Investors LLC, which is also a lender, said in court papers that Boston Generating, a unit of US Power Generating Co., is moving at a “breakneck pace” to sell its assets while refusing to provide information that would allow them to review the proposal.
Boston Generating filed for bankruptcy in August with an agreement to sell five power plants in the Boston area to Baltimore-based Constellation for $1.1 billion. The deal would be subject to higher bids at the auction that Boston Generating has proposed.
Lawrence McDonnell, a spokesman for Constellation, and D.J. Baker, a lawyer for Boston Generating, couldn’t be reached for comment.
The case is In re: Boston Generating LLC, 10-14419, U.S. Bankruptcy Court for the Southern District of New York (Manhattan).