Union Power Partners Files for Chapter 11 Reorganization

by Mark Friedman  on Wednesday, Aug. 6, 2014 11:07 am  

(Editor's Note: A correction has been made to this article. See note at the end of the article for details.)

The Entegra Power Group LLC of Tampa, Florida, and several of its subsidiaries, including Union Power Partners L.P., which operates the Union River Power Station and is headquartered in El Dorado, filed for Chapter 11 bankruptcy protection on Monday.

The filing shows Entegra has estimated more than $1 billion in debts and between $500 million and $1 billion in assets. A more detailed filing is expected to be released at a later date.

The company will "continue operations at the Union Power facility for the term of the bankruptcy without any interruption," according to an email Arkansas Business obtained from William F. O’Brien, vice president of engineering and operations for the Entegra Power Group, to the Union County Water Conservation Board. 

The Union Power Station sits on 330 acres in Union County near El Dorado and began operating in 2003. The station can produce about 2,200-megawatt of electrical power, according to the company's website.

Entregra's board of directors voted during a telephone conference call on July 31 to file for Chapter 11 bankruptcy protection.

According to the bankruptcy filing, the creditors holding 30 of the largest unsecured claims include $1.3 billion owed to Wells Fargo as third lien administrative agent for a bank loan.

Creditors based in Arkansas include:

  • $180,599 to Union County Water Conservation Board of El Dorado for utility.
  • $125,018 to Diversified Services Lawn & Garden of El Dorado for trade debt.
  • $103,196 to CIA Specialist of Camden for trade debt.
  • $79,520 to John Ingram Inc. of El Dorado for trade debt.
  • $58,606 to TJC Crane of Camden for trade debt.
  • $38,672 to Advent Systems of North Little Rock for trade debt.
  • $37,179 to CP&P Construction LLC of El Dorado for trade debt.

"The First Day Motions provided for the continued payment of unsecured claims in the ordinary course of business, O'Brien said in the email. "We do not plan to reject any contracts. The bankruptcy will allow Entegra Power Group LLC to restructure debt and equity in order to exit bankruptcy with a more stable capital structure."

O'Brien said he estimated the process could take up to three months. In the meantime, the company will use its cash "to support any collateral requirements during the bankruptcy.  

"We appreciate your support as we work through this restructuring," he said.

Corrections: In the original version of this story, the names of the Union County Water Conservation Board and the Union Power Station were incorrect.

 

 

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