Mach Gen Files for Chapter 11 Bankruptcy in DelawareJoe Schneider
Mach Gen LLC, a New York-based electricity generator owned by units of financial institutions that include Bank of America Corp. and Credit Suisse Group AG, filed for bankruptcy in Delaware.
The company, based in Athens, New York, listed assets of more than $500 million and liabilities of more than $1 billion in its Chapter 11 filing yesterday in U.S. Bankruptcy Court in Wilmington, Delaware.
The financial institutions created Mach Gen to hold 100 percent of their interests in the New Athens project, which operates a three-unit 936 megawatt natural-gas fired generating plant in New York state, and generators in Charlton, Massachusetts, and Maricopa County, Arizona, according to a Jan. 24 filing with the State of New York Public Service Commission.
Citigroup Alternative Investments LLC has a 1.1 percent stake in Mach Gen, with Credit Suisse Securities (USA) LLC holding 8.7 percent and Merrill Lynch Genco II LLC having 13.9 percent, according to the Chapter 11 filing. Sola Ltd. has a 10.6 percent stake.
Mach Gen had planned to file a prepackaged plan of reorganization which would give the company’s second-lien debt holders a 93.5 percent stake in the voting equity of the reorganized company, according to the filing with the state commission.
The reorganization, which is backed by the majority of economic stakeholders, will wipe out about $1 billion of debt, the company said in the state commission filing.
The case is In re Mach Gen LLC. 14-10461. U.S. Bankruptcy Court, District of Delaware (Wilmington).