Empire Generating cancels auction, names Black Diamond winning bidder

By Caroline Salls

Pittsburgh, July 8 – Empire Generating Co., LLC canceled the auction for substantially all of its interests in Empire Gen Holdings, LLC and named secured lender Black Diamond Capital Management as the winning bidder, according to a notice filed Saturday with the U.S. Bankruptcy Court for the Southern District of New York.

As previously reported, Black Diamond, which has a 55% stake in Empire Generating’s secured debt, put in a stalking horse credit bid via an entity known as Empire Acquisition, LLC. Through the credit bid, Black Diamond said it plans to accept equity in exchange for what it is owed.

Specifically, the stalking horse bid is comprised of a credit bid of $353.44 million in principal amount plus interest and specified fees and expenses, a $30,000 winddown amount.

No qualified competing bids were received by the bid deadline, according to Saturday’s notice.

The sale hearing is scheduled for July 19.

Empire Generating is the owner of a large natural-gas fired power plant in Rensselaer, N.Y. It filed for bankruptcy on May 9 under Chapter 11. The case number is 19-23007.

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