March 3 Electricity generator Mach Gen LLC filed for Chapter 11 bankruptcy protection in Delaware late Monday as shrinking power demand and lower energy and capacity margins hurt the company, a court filing showed.
The Athens, New York-based company, owned by affiliates of Credit Suisse Group AG and Bank of America Corp among others, said regulatory hurdles that halted the sale of its Harquahala Facility in 2013 meant it could not cut debt.
"Mach Gen has faced significant interest expenses due to the leveraged nature of its balance sheet, which, in combination with declining revenues, has impacted Mach Gen's ability to service its long-term debt," the filing said.
As of Dec. 31, 2013, Mach Gen's unaudited balance sheet reflected assets of about $750 million and liabilities of about $1.6 billion, it said.
Mach Gen listed MACH Gen GP LLC, Millennium Power Partners, LP, New Athens Generating Company LLC and New Harquahala Generating Company LL as affiliates in the filing.
The company said a majority of its stakeholders had agreed to a prepackaged plan of reorganization, which would give its second-lien debt holders 93.5 percent of the restructured company and reduce about $1 billion of debt.
Mach Gen generated about $350 million in operating revenue for 2013 and a net loss of about $120 million.
The case is in re: Mach Gen LLC, Case No. 14-10461. U.S. Bankruptcy Court, District of Delaware.