said * Files a voluntary petition under Chapter 11
* Majority of creditors sign sales support pact
* Says has requisite funding in hand for operations
Aug 18 (Reuters) - EBG Holdings LLC, its principal operating unit Boston Generating LLC, and five other wholly owned units voluntarily filed for Chapter 11 in a bankruptcy court, the company said in a statement.
EBG, a unit of privately held US Power Generating Co, said it is seeking a sale of assets pursuant to Section 363 of the U.S. Bankruptcy Code, as part of the filing with the bankruptcy court for Southern District of New York.
EBG and its six units that filed the petition, are collectively known as BostonGen.
Majority of the creditors of BostonGen’s $1.1 billion first-lien term bank loan, its $250 million first-lien synthetic letter of credit and its $70 million first-lien revolving credit facility, have signed a sales support agreement.
The company intends to continue its business operations throughout the administration of the bankruptcy case and said it has requisite funding in hand for working capital purposes.
It has also filed a series of first-day motions in the bankruptcy court to ensure that there will be no material disruption to its operations during the bankruptcy process.
The company said it expects to exit the proceedings through a sale as a going concern and that the current management team will remain in place throughout the process.
Earlier this month, Power company Constellation Energy Inc CEG.N agreed to buy five power plants in New England from Boston Generating for about $1.1 billion through a court approved bankruptcy proceeding to be initiated by Boston Generating. [ID:nSGE6780EY] (Reporting by Abhinav Sharma in Bangalore; Editing by Vyas Mohan)
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