Dynegy: Roseton and Danskammer facilities to be sold for $23 million

By Caroline Salls

Pittsburgh, Dec. 10 - Dynegy Inc. said the winning bidders of the auction process for its Roseton and Danskammer power generation facilities were ICS NY Holdings, LLC and Louis Dreyfus Highbridge Energy LLC, with a combined cash purchase price of $23 million.

According to a company news release, Roseton will be sold to Louis Dreyfus Highbridge for $19.5 million in cash, and Danskammer will be sold to ICS for $3.5 million in cash.

ICS and Louis Dreyfus Highbridge will also assume specified liabilities as part of the sale.

The facilities are located in Newburgh, N.Y.

Dynegy said Louis Dreyfus Highbridge has agreed to operate under the terms of an expired union contract, which was modified by a unilaterally implemented "last, best and final offer" made to the union on Nov. 7.

Danskammer, which was rendered inoperable as a result of Superstorm Sandy, will be retired upon completion of the appropriate regulatory processes.

Following closing of the sale and retirement notification process, Dynegy said ICS will demolish any remaining structures and remediate the site.

Dynegy said it is in the process of communicating with employees whose jobs will be affected by the facility sales.

According to an 8-K filed by Dynegy with the Securities and Exchange Commission, the proceeds from the Danskammer and Roseton sales will be distributed under the Dynegy Northeast Generation, Inc., Hudson Power, LLC, Dynegy Danskammer, LLC and Dynegy Roseton, LLC debtors' joint plan of liquidation.

The sale hearing is scheduled for Dec. 21. The sale will also be subject to satisfaction of closing conditions and the receipt of any required regulatory approvals.

Dynegy is a Houston-based producer and seller of electric energy, capacity and ancillary services.

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