Boston Generating committee says sale only benefits first-lien lenders

By Caroline Salls

Pittsburgh, Nov. 9 - Boston Generating, LLC's official committee of unsecured creditors objected to the proposed $1.1 billion sale of substantially all of the company's assets, arguing that the sale would only benefit first-lien lenders, according to a Tuesday filing with the U.S. Bankruptcy Court for the Southern District of New York.

The committee said the proposed sale would also divest Boston Generating's estates of unencumbered litigation assets that should go to benefit unsecured creditors.

According to the objection, the company and the first-lien agent claim that the unsecured creditors are "out of the money" in these cases. However, the committee said it does not agree.

Since the proposed sale will prejudice the unsecured creditors' rights and potential recovery, the committee said it should not be approved.

A hearing is scheduled for Nov. 17.

Boston Generating, a Charlestown, Mass., power company, filed for bankruptcy on Aug. 18. The Chapter 11 case number is 10-14417.

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