Power Group Online Article |  | |
25 February 2008 -- Reliant Energy plans to sell the 830 MW Channelview cogeneration plant and related contracts to an affiliate of Kelson Energy for $468 million, or $564/kW.
The transaction is expected to resolve the bankruptcy proceedings that began in August 2007 when four subsidiaries related to the Channelview plant filed for Chapter 11 bankruptcy protection.
Proceeds from the sale will be used to settle the claims of secured creditors (including approximately $379 million of debt, accrued interest and make-whole payments, the claims of unsecured creditors and a cash-sharing agreement. Residual proceeds will be retained by Reliant. The sale is subject to several closing conditions, including the approval of the court overseeing the bankruptcy.
Channelview is a combustion turbine-based cogeneration facility, which began commercial operation in 2002.
Kelson Energy is an independent power producer. Kelson currently owns or leases four combined-cycle gas-fired facilities located in the Southwest and Southeast. The company has an aggregate total capacity of 4,002 MW.
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