BOSTON GENERATING COMMENCES ASSET SALE WITH COURT APPROVED BIDDING PROCEDURES
New York, NY - October 13, 2010 — Boston Generating, LLC (“BostonGen” or the “Company”) today announced that it received approval from the United States Bankruptcy Court for the Southern District of New York on October 9, 2010 for bidding procedures that will guide the process for the sale of the Company’s assets.
As part of its Chapter 11 sale process, BostonGen entered into an asset purchase agreement with “stalking horse” bidder Constellation Energy (NYSE: CEG) for the 2,950 MW fleet, the third largest power generating portfolio in the New England region. Under the terms of the asset purchase agreement, Constellation Energy agreed to purchase BostonGen’s assets for approximately $1.1 billion. The sale of the Company’s assets is expected to be consummated through the bankruptcy proceedings and Constellation Energy’s bid is considered the price to beat in an asset auction.
Parties now have an opportunity to compete with Constellation Energy’s bid. BostonGen has retained J.P. Morgan Securities Inc. (“J.P. Morgan”) to act as its financial advisor in connection with the auction process and will be broadly distributing sales materials as part of the process.
“We are pleased to have received the bankruptcy court’s approval to move forward with the auction process in a timely and orderly fashion,” said Mark Sudbey, Chief Executive Officer of US Power Generating Company, BostonGen’s parent company. “BostonGen is a solid operation and this auction process will allow us to remain on track to emerge from bankruptcy on schedule and to position the assets for long term success.”
About BostonGen
BostonGen is a subsidiary of US Power Generating Company, which, through its subsidiaries Astoria Generating Company Holdings, L.L.C. and EBG Holdings LLC (owner of BostonGen), owns and operates eight power generation facilities with a total capacity of over 5,000 Megawatts. These subsidiaries sell their energy and capacity into the NYISO and ISO-New England deregulated markets, representing generation sufficient to serve approximately 20% of the overall load in New York City as well as approximately 50% of the overall load in the Boston metropolitan area. More information regarding US Power Generating Company can also be found at www.uspowergen.com.
Media Contacts:
John Reese, Senior Vice President
Phone: 212-792-0897
Email: jreese@uspowergen.com
or
Josh Hochberg or Erica Bartsch, Sloane & Company
Phone: 212-486-9500
Email: jhochberg@sloanepr.com or ebartsch@sloanepr.com