By Editors of Power Engineering
GenOn, which filed for bankruptcy protection last June, has sold its 810-MW Hunterstown power generation facility for $520 million to Platinum Equity. The deal is expected to close in the second quarter.
Platinum Equity is seeking additional platform investments in the power generation market, as well as add-on opportunities for Hunterstown.
“The power generation industry continues to experience some dislocation, which is fueling corporate carve out activity,” said Platinum Equity Partner Louis Samson. “Hunterstown is well maintained and features industry-leading technology. It operates in PJM, the largest electricity market in the United States, and generates strong recurring revenue streams.”
GenOn, a unit of NRG Energy that once held a fleet of gas, fuel oil and coal power stations totaling more than 15,300 MW, filed for bankruptcy as a result of $1.75 billion in debt.
NRG is not in bankruptcy, and will cut ties with GenOn after GenOn completes its bankruptcy process. NRG is contributing $261 million to fund GenOn’s restructuring.
NRG acquired GenOn and its 32 power plants in eight states back in 2012.