The coal-fired Homer City Generating Station is now involved in its second bankruptcy reorganization in five years.
The owners of the 2,022-MW plant in Homer City, Pennsylvania, Homer City Generation LP, reported $607 million in debts, the Pittsburgh Post-Gazette reported. The plant will continue to operate during the reorganization.
The plant faced ongoing financial woes, as GE Capital, head of the Homer City Generation joint venture, previously reported an $800 million impairment charge on Homer City and noted it would look to exit the investment over time.
However, its debt holders rejected bids to purchase the plant, saying the bids between $230 million and $535 million were too low. The plant’s debt holders will become equity owners in a holding company as part of the reorganization.
Additionally, the plant faced a lawsuit from Consol Energy Inc., Homer City’s largest coal vendor, over allegations the owners did not honor a coal supply contract. That lawsuit was settled earlier this month.
The plant employs 245 people. GE Capital stepped in to finance the plant during the bankruptcy of EME Homer City five years ago.