ExGen Texas bid procedures approved; Handley station auction Dec. 18

By Caroline Salls

Pittsburgh, Nov. 30 – ExGen Texas Power, LLC obtained court approval of the bid procedures for the proposed $60 million sale of its assets, according to an order filed Thursday with the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, ExGen Texas filed bankruptcy to implement an asset purchase agreement under which Exelon Generating Co., LLC will acquire ExGen Texas’ Handley Generating Station for $60 million.

In accordance with ExGen Texas’ approved bid procedures, Exelon Generating will receive a $750,000 breakup fee and reimbursement of up to $300,000 of its sale-related expenses if it is not the high bidder.

The initial overbid amount for the Handley station will be $2 million, and subsequent bids must be made in minimum increments of $250,000.

Competing bids are due by 5 p.m. ET on Dec. 14. An auction will be held on Dec. 18, if necessary.

The sale hearing is scheduled for Jan. 5.

ExGen is the owner of a portfolio of combined-cycle and natural gas-fired peaking and steam turbine generators in Texas. The company is owned by Exelon Generation Co. ExGen filed for bankruptcy on Nov. 7 under Chapter 11 case number 17-12377.

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