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PG&E National Energy Group, the Bethesda, Md.-based owner of Athens Generating, announced Tuesday that it and several subsidiaries have filed for protection from creditors under Chapter 11 of the U.S. Bankruptcy Code.
The bankruptcy filing in Maryland, anticipated as part of a corporate restructuring plan, is expected to have no effect on the construction or future operation of Athens Generating, according to plant spokeswoman Kristine Schettini. She said the plant, which is currently being transferred to a 16-bank syndicate to satisfy a $355 million debt, is not one of the entities included in the filing.
"Today's filing doesn't change the transfer of (Athens Generating) to the lenders," she said.
National Energy Group missed the June 30 deadline to transfer Athens Generating along with two other plants to the syndicate led by French banking giant Societe Generale. The new deadline for transfer is Aug. 29, but it could be extended to Sept. 30 at the request of the lenders.
Alexander "Sandy" Mathes, executive director of the Greene County Industrial Development Agency, said the bankruptcy will not affect the payment in lieu of taxes agreement recently signed by Athens Generating. Under the terms of the pact, Athens Generating agrees to make annual payments to the county, Catskill school district and town of Athens, totaling between $83.9 million and $87.2 million, over the next 20 years.
"The PILOT will not be affected," Mathes said. "We actually signed the PILOT with the bankers, not National Energy Group."
Also filing for protection from creditors was PG&E Energy Transmission Holding Co., along with several of its subsidiaries, and USGen New England Inc.
The corporate restructuring plan anticipates that PG&E Corp. will have no equity interest in PG&E National Energy Group or any of its subsidiaries after Chapter 11 proceedings are completed, according to a press release. Equity would instead be transferred to creditors.
National Energy Group and its subsidiaries owe approximately $5.5 billion to creditors.
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