AES Eastern Energy seeks 90-day exclusivity extension to file a plan

By Jim Witters

Wilmington, Del., April 5 - AES Eastern Energy, LP is seeking a 90-day extension of its exclusive periods for filing a Chapter 11 plan and soliciting plan acceptances, according to documents filed April 5 with the U.S. Bankruptcy Court for the District of Delaware.

If the request is granted, the exclusive period for filing a Chapter 11 plan would be extended to July 27 from April 28, and the exclusive period for seeking plan approval would be extended to Sept. 25 from June 27.

A hearing on the request is scheduled for 10 a.m. ET on April 25.

Reasons for extension

The debtors said they need the additional time because the sale of two operating power plants has been delayed by disagreements among noteholders on the details of financing the purchase.

The debtors also need time to evaluate the remaining assets and liabilities, including the four retained power plants, according to the court documents.

The four retained plants involve contractual obligations and complicated tax and regulatory issues, the motion states.

"The filing of a Chapter 11 plan at this juncture would be premature and disruptive of the sale and wind-down process," the motion states.

AES Eastern Energy, which operates more than 1,000 megawatts of capacity at four facilities in New York, filed for bankruptcy on Jan. 3. Its Chapter 11 case number is 11-14138.

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