FES Reaches Agreement to Sell West Lorain
November 21, 2018
FirstEnergy Solutions (FES) has reached an agreement to sell the West Lorain Facility and related assets to Vermillion Power, LLC, an affiliate of Starwood Energy Group. The agreement includes a purchase price of $144 million in cash plus certain closing adjustments, subject to higher or otherwise better bids.
“We believe the proposed sale represents the best path forward to preserve and realize the value of the West Lorain Facility and the related assets and, in turn, to maximize the recoveries for our stakeholders,” said Don Moul, president, FES Gen Companies and CNO.
Starwood Energy Group is a private investment firm based in Greenwich, CT that specializes in energy infrastructure investments. Through its general opportunity funds and other affiliated investment vehicles, Starwood Energy Group has raised equity commitments in excess of $3 billion and has executed transactions totaling more than $7 billion in enterprise value.
To complete the sale through a court-supervised bankruptcy auction process, a motion has been filed for the implementation of bidding procedures to allow other companies to have an opportunity to submit bids through a Court supervised, competitive bidding process. The bidding procedures motion calls for all qualified bids to be submitted by January 9, 2019, with an auction to be held January 15, 2019, if competing bids are received. Any objections to the sale transaction must be filed by January 18, 2019.
The sale hearing is scheduled to be held on January 25, 2019, subject to Court approval and may change accordingly.
It is anticipated that the final sale and transition of the assets will be completed in the first half of 2019. The transaction is subject to Bankruptcy Court approval, along with all additional necessary approvals, including approval of the Federal Energy Regulatory Commission.
During the sale process, West Lorain will continue to operate in the ordinary course of business.