Optim gets lead bid to sell Twin Oaks electric plant for $60 million

By Caroline Salls

Pittsburgh, June 17 – Optim Energy, LLC requested court approval of the bid procedures for the proposed $60 million sale of some of Optim Energy Twin Oaks, LP’s assets, according to a Tuesday filing with the U.S. Bankruptcy Court for the District of Delaware.

Optim Energy Twin Oaks owns an electric generating plant known as Twin Oaks Power Station, located in Robertson County, Texas.

Major Oak Power, LLC is the stalking horse bidder.

The company said the $60 million proposed purchase price would be subject to adjustment. The stalking horse bid also includes the assumption and assignment of specified executory contracts but does not include assumption of a fuel supply agreement with Walnut Creek Mining Co.

Competing bids are due by 3 p.m. ET on July 23 and must be for at least $5 million more than the stalking horse bid, plus a $1.8 million break-up fee and up to $1 million in expenses to be paid if Major Oak is not the high bidder.

An auction will be held on Aug. 4, if necessary. Bids at auction must be made in minimum increments of $2 million.

The company has requested a June 25 hearing on approval of the bid procedures.

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

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