UPDATE 1-Connecticut power plant owned by AES files Chapter 11

Tue Feb 1, 2011 2:36pm EST

Feb 1 (Reuters) - A Connecticut coal-fired power plant owned by U.S. power company AES Corp (AES.N) filed for bankruptcy protection in a Delaware court.

In court papers, AES Thames LLC said a rise in coal prices and transportation and compliance costs over the past decade have led to a substantial increase in production cost.

The company generates and sells electricity to the Connecticut Light and Power Co (CL&P).

AES Thames also cited an ongoing lawsuit with Smurfit Stone Container Corp SSCC.N over the supply of steam as one of the reasons for filing Chapter 11.

The company had told Smurfit Stone and CL&P on Jan. 26 that it planned to temporarily shut down the facility.

AES Thames said it has about $162 million in total assets and employs 43 people.

The case is In re: AES Thames LLC, U.S. Bankruptcy Court, District of Delaware, No. 11-10334. (Reporting by Santosh Nadgir in Bangalore; Editing by Vyas Mohan)

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.