Optim Energy gets court OK on plant sale procedures, $82 million bid

By Kali Hays

New York, July 7 – Optim Energy, LLC obtained court approval of the sale procedures and an $82 million asset purchase agreement with Twin Oaks Power, LLC for the sale of some Optim Energy Twin Oaks, LP assets, according to a July 3 order with the U.S. Bankruptcy Court for the District of Delaware.

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

The initial stalking-horse bidder was Major Oak Power, LLC with a bid of $60 million.

Twin Oaks’ bid consists of $82 million in cash, a payment for the plant’s coal value upon the sale closing, payment of Optim’s capital expenditures from July 1 through the sale closing and the assumption of liabilities, according to the purchase agreement.

A deposit of $12.3 million will be applied to the cash portion of the sale at closing or reimbursed if Twin Oaks is not ultimately the high bidder for the assets.

Twin Oaks will be reimbursed for sale-related expenses up to $400,000 and receive a break-up fee of $2.46 million if it is not the prevailing bidder.

As previously reported, competing bids are due by 3 p.m. ET on July 23 and must be $5 million over the stalking-horse bid.

An auction will be held Aug. 4 if Optim receives an additional qualified bid.

A sale hearing is scheduled for Aug. 7.

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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