La Paloma Generating sets bid procedures for sale of company assets

By Caroline Salls

Pittsburgh, Aug. 17 – La Paloma Generating Co., LLC requested court approval of the bid procedures for the proposed sale of substantially all of its assets, according to a motion filed with the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, La Paloma plans to sell its assets in conjunction with its Chapter 11 plan.

If no attractive preliminary indications of interest are received from potential purchasers before Aug. 30, the company said it will sell the assets to first-lien lender LNV Corp. through a credit bid.

If the company selects a stalking horse bidder and that bidder is not ultimately the high bidder for the assets, La Paloma will pay it a 3% break-up fee and reimburse 1% of its sale-related expenses.

Competing bids are due by 5 p.m. ET on Sept. 22.

An auction will be held on Sept. 27, if necessary.

The company is requesting an Oct. 12 hearing on both confirmation of its plan and approval of the sale.

The sale is expected to close and the plan to take effect on Oct. 26.

A hearing is scheduled for Sept. 6.

La Paloma is a 1,022 MW combined-cycle gas-fired power plant located in Kern, Calif. The company filed for bankruptcy on Dec. 6, 2016 under Chapter 11 case number 16-12700.

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