EBG Holdings, the parent of Boston Generating, LLC ("BostonGen" or the "Company") today announced that the Special Committee of its Board of Directors has concluded its review of potential bids for a sale of the Company's assets pursuant to Section 363 of the Bankruptcy Code. The Special Committee concluded that no bid submitted met the requirements of the court ordered bidding process and determined that BostonGen should move forward with the asset purchase agreement previously entered into with Constellation Energy (NYSE: CEG), for the 2,950 MW fleet, the third largest power generating portfolio in the New England region. Under the terms of the asset purchase agreement, Constellation Energy agreed to purchase BostonGen's assets for approximately $1.1 billion.
On Wednesday, November 17, 2010, the result of the review process will be presented to Judge Shelley C. Chapman of the U.S. Bankruptcy Court, Southern District of New York, for approval or alternative action.
"This is yet another positive step toward ensuring the continued uninterrupted operation of the assets by a financially stable owner," said Mark Sudbey, Chief Executive Officer of US Power Generating Company, EBG Holdings LLC's parent company. "Constellation Energy has agreed to purchase solid assets that meet its strategic needs."
About BostonGen
BostonGen, a subsidiary of EBG Holdings LLC, owns and operates over 3,000 MW of generation in Massachusetts. The Company sells energy and capacity in the ISO-New England deregulated market and owns generation sufficient to serve approximately 50% of the overall load in the Boston metropolitan area.
Contacts:
For Boston Generating, LLC
John Reese, 212-792-0897
Senior
Vice President
jreese@uspowergen.com
or
Sloane
& Company
Josh Hochberg or Erica Bartsch, 212-486-9500
jhochberg@sloanepr.com
or ebartsch@sloanepr.com