May 7, 2012
By: John Clark
Bicent Holdings LLC and 12 of its indebted subsidiaries are seeking protection from creditors by filing for Chapter 11 bankruptcy, according to a report from Bloomberg News.
The electricity producer and its affiliates plan to file a pre-arranged reorganization scheme with the bankruptcy court within the next week, according to sources.
In its bankruptcy filing, which took place in U.S. Bankruptcy Court in Wilmington, Delaware, the energy producer claimed that it had less than $500,000 in assets, but as much as $1 billion in debt.
The staggering debt load carried by the energy producer is not uncommon with similar companies these days, which is why bankruptcy headlines have recently read like a laundry list of energy companies in the United States.
The financial crisis took a severe toll on energy generating facilities, as well as the groups that fund them. And a wave of bankruptcies has struck energy producers across the country, from eastern electricity producers to those in the west, including Bicent Holdings, which is based in Colorado.
In the company’s bankruptcy filing, Christopher Ryan, the Chief Financial Officer of Bicent Holdings, said that the "company engaged in extensive negotiations with the supporting lenders, which resulted in the debtors successfully negotiating a pre-arranged plan of reorganization."
Among the company’s largest creditors were Barclays Capital, which is owed $65.5 million, Lea Power Partners LLC, which is asking for $22 million, and the Montana Department of Revenue, which has a claim of just under $1 million.
Presumably, if Bicent Holdings was able to come to a pre-arranged bankruptcy agreement, it reached a suitable understanding with these three primary creditors with respect to the repayment of its debts.
The company, which is based in Lafayette, Colorado, owns two different power generating facilities. One facility, which is located near Billings, Montana, is a 120-megawatt coal-fired plant. The other, which is located just east of San Francisco, is a 48-megawatt natural gas facility.
Subsidiaries of Bicent Holdings that are also filing for bankruptcy include groups like Colorado Energy Management, CEM Energy Services, Colorado Cogen Operators, San Joaquin Cogen, Rocky Mountain Power and Hartwell Power Co.
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