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
"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.