Energy Future withdraws motion for TCEH debtor to bid on Optim assets

By Caroline Salls

Pittsburgh, July 14 – Energy Future Holdings Corp. withdrew its request for an order authorizing but not requiring its Texas Competitive Electric Holdings Co. LLC (TCEH) to participate in a competitive auction for the acquisition of Optim Energy, LLC’s strategic business assets, according to a Monday filing with the U.S. Bankruptcy Court for the District of Delaware.

If selected as the high bidder, TCEH would have been authorized to close a proposed acquisition under the motion without further court order.

In Monday’s withdrawal notice, the Energy Future debtors reserved their right to file a new bid motion in the future.

According to the motion filed in June, TCEH would have submitted a $68 million offer for the Optim assets. Optim’s initial stalking horse agreement included a $60 million bid from Major Oak Power, LLC.

However, Optim obtained court approval on July 3 of the bid procedures for the sale of its Twin Oaks plant assets and approval of an $82 million bid agreement with Optim Energy Twin Oaks, LP.

Competing bids are due on July 23 and must exceed the Optim Energy Twin Oaks bid by $5 million.

Optim, a Silver Spring, Md.-based power plant owner, filed bankruptcy on Feb. 12. The Chapter 11 case number is 14-10262.

Energy Future, a Dallas-based power generation company and utility operator, filed bankruptcy on April 29. The Chapter 11 case number is 14-10979.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.