Bicent Power in bankruptcy; lenders agree to support Chapter 11 plan

By Caroline Salls

Pittsburgh, April 23 - Bicent Holdings LLC filed Chapter 11 bankruptcy Monday in the U.S. Bankruptcy Court for the District of Delaware after negotiating a pre-arranged plan of reorganization with its supporting first-lien and second-lien lenders.

The company plans to file its pre-arranged plan within five business days of the bankruptcy filing date.

Under the proposed plan, holders of administrative claims, priority claims and fee claims will be paid in full on the plan effective date.

Holders of first-lien credit facility claims will receive substantially all of the equity of the post-emergence company, and holders of second-lien credit facility claims will receive warrants to obtain equity if they vote as a class to accept the plan.

Chief financial officer Christopher L. Ryan said in a statement filed with the court that "a series of unexpected and unforeseen events made it impossible" for the Bicent debtors to comply with some of the covenants in their pre-bankruptcy credit agreements or to otherwise refinance the pre-bankruptcy loans.

Ryan said some of the loan debt is scheduled to mature in 2012.

In conjunction with the bankruptcy filing, the company has obtained a commitment for $57 million in debtor-in-possession financing, including $25 million in term loans and a $32 million synthetic letter-of-credit facility.

Barclays Bank plc is the administrative agent, deposit agent and collateral agent.

The DIP facility will mature on the earliest of 150 days from the bankruptcy filing date, 30 days after the interim order if the final order has not been entered, the effective date of a plan of reorganization, acceleration of any of the DIP loans, dismissal or conversion of the Chapter 11 case and appointment of a trustee, receiver or examiner.

Interest will accrue at the Eurodollar rate plus 1,000 basis points with a 2% floor.

The company is seeking interim access to $6 million of the term loan facility, as well as the issuance of up to $2.23 million in DIP letters of credit.

According to court documents, Bicent has zero to $50,000 in assets and $50 million to $100 million of debt.

Bicent's largest unsecured creditors include mezzanine credit agreement agent Barclays Capital, with a $65.51 million loan claim and Lea Power Partners, LLC of Boston, with a $22.04 million litigation claim.

The company is represented by Young Conaway Stargatt & Taylor, LLP.

Bicent Holdings is the Lafayette, Colo.-based parent company for Bicent Power LLC, which operates electric generating facilities. Its Chapter 11 case number is 12-11304.

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