According to the U.S. Bankruptcy Court docket, Peabody Electricity (PE), a Debtor affiliate of Peabody Energy Corporation (PEC), filed a motion for entry of an order: (a) authorizing PE to (i) assume a Prairie State interest purchase and sale agreement by and between PE and Wabash Valley Power Association and (ii) approving the related sale.
The motion states “Under the Prairie State Agreement, among other things, PE agreed to sell 100% of its ownership interest in LGEP (the ‘LGEP Membership Interest’), whose sole asset is the 5.06% undivided ownership interest (which includes certain Prairie State assets) in Prairie State (the ‘Prairie State Ownership Interest’), to Wabash for $57 million in cash and assumption of certain liabilities, subject to certain post-closing adjustments to reconcile certain revenues, expenditures and expenses attributable to the period prior to the closing of the transaction….Wabash agrees to pay $57 million in cash (by wire transfer of immediately available funds) to PE under the Prairie State Agreement on account of the LGEP Membership Interest.”
The motion continues, “PEC selected Marathon Capital, based on its experience with successfully marketing and selling assets similar to the Prairie State Ownership Interest, as the investment banker and financial advisor in connection with PE’s efforts to sell the LGEP Membership Interest….The offers Marathon received for the Prairie State Ownership Interest ranged from as low as $10 million to the Wabash cash bid of $57 million.” The Court scheduled a May 5, 2016 hearing to consider the sale motion, with objections due by April 29, 2016.
Read more Peabody Energy bankruptcy news.
The post Peabody Energy Sale Approval Sought appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.