Bondholders Scoop Up AES Eastern Power Plants For $240M

Law360, Wilmington (April 11, 2012, 3:51 PM EDT) -- A Delaware bankruptcy judge on Wednesday cleared AES Eastern Energy LP to sell its two coal-fired power plants in upstate New York to bondholders for a $240 million credit bid.

At a court hearing in Wilmington, U.S. Bankruptcy Judge Kevin J. Carey signed off on the sale, which rids the AES Corp. unit of its only operating power plants, located in Cayuga and Somerset, N.Y.

Before closing the sale, the new company formed by the bondholders — Somerset Cayuga Holding Co. Inc. — will need to...
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