Boston Generating files plan to distribute asset liquidation proceeds

By Caroline Salls

Pittsburgh, March 22 - Boston Generating, LLC filed its plan of liquidation and related disclosure statement Monday with the U.S. Bankruptcy Court for the Southern District of New York.

Under the plan, all of the company's remaining assets will be transferred to a trust to be liquidated with the proceeds to be distributed to creditors.

Treatment of creditors will include:

• Holders of administrative expense claims, priority tax claims and other priority claims will be paid in full in cash;

• Holders of first-lien facility super-priority claims will receive net avoidance action proceeds, other super-priority proceeds and any cash remaining after payment in full of first-lien facility secured claims;

• Holders of first-lien facility secured claims will receive an adjusted cash amount and any available cash remaining after payment of priority claims;

• Holders of other secured claims will receive either the collateral securing their claims or another treatment that renders their claims unimpaired;

• Holders of general unsecured claims will receive any net avoidance action proceeds and super-priority proceeds remaining after payment of first-lien, priority and administrative claims, as well as any available cash remaining after payment of the priority claims; and

• Holders of intercompany claims, old equity and old equity rights will receive no distribution.

The disclosure statement hearing is scheduled for April 25. According to the disclosure statement, the plan confirmation hearing will be held on June 1.

Boston Generating, a Charlestown, Mass., power company, filed for bankruptcy on Aug. 18, 2010. The Chapter 11 case number is 10-14419.

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