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US Power Plant Firm Goes Bankrupt After Winter Storm Penalties

  • Owner of power plants was already facing liquidity constraints
  • Lincoln’s debt load became unworkable, company executive says

Lincoln Power LLC, the owner of two Illinois power plants, filed for bankruptcy after its financial strain was exacerbated by nearly $39 million in penalties levied by the biggest US electric-grid operator. 

The Chapter 11 filing allows Lincoln, a unit of Carlyle Group-backed Cogentrix Energy Power Management LLC, to keep operating while working on a plan to repay creditors.