Bloomberg reported:
Lincoln Power LLC, the owner of two Illinois power plants, filed for bankruptcy after its financial strain was exacerbated by nearly $39 million in penalties levied by the biggest US electric-grid operator.
The Chapter 11 filing allows Lincoln, a unit of Carlyle Group-backed Cogentrix Energy Power Management LLC, to keep operating while working on a plan to repay creditors.
The storm penalties and the cash withheld weighed on the company’s already-strained finances.
The company owes lenders more than $150 million across a term loan and revolving credit facility, court papers show. It also has about $8 million in letters of credit outstanding.
It will be interesting to see if creditors take over Lincoln Power LLC. Carlyle raised $1.5 billion for North American power assets in April 2016.
Carlyle branched out into renewable energy assets through Aspen Power and Amp Energy.
Cogentrix's website did not share the Bloomberg story under its news page.
Stay tuned for what be the beginning of a number of private equity underwriter (PEU) bankruptcies. PEU practices place many affiliates in a precarious financial position. Something changes and boom, bankruptcy.
