FirstEnergy Generation cancels auction for sale of West Lorain assets

By Caroline Salls

Pittsburgh, Jan. 11 – FirstEnergy Generation, LLC cancelled the auction scheduled for Jan. 15 for the sale of its West Lorain facility and related assets, according to a notice filed Thursday with the U.S. Bankruptcy Court for the Northern District of Ohio.

The company said it did not receive any qualified bids for the West Lorain assets other than the stalking horse bid submitted by Starwood Energy Group Global, LLC affiliate Vermillion Power, LLC.

Under the stalking horse agreement, Vermillion Power has agreed to pay $144 million in cash for the Lorain assets. FirstEnergy said in the bid procedures motion that the total consideration expected to be realized from the sale is roughly $152 million.

As a result, FirstEnergy said it will ask the court to approve a sale to Vermillion at the Jan. 25 sale hearing.

FirstEnergy Solutions is an Akron, Ohio, provider of energy and services to retail and wholesale customers. The company filed for bankruptcy on March 31, 2018 under Chapter 11 case number 18-50757.

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