UPDATE 1-USPowerGen’s BostonGen files for Chapter 11 bankruptcy

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 (BestGrowthStock) – 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)

UPDATE 1-USPowerGen’s BostonGen files for Chapter 11 bankruptcy