HOUSTON (AP) — Dynegy Inc. said Monday that had auctioned off two power plants near Newburgh, N.Y., for a combined price of $23 million.
Dynegy, which emerged from Chapter 11 bankruptcy protection in October, will sell the Roseton facility to Louis Dreyfus Highbridge Energy LLC for $19.5 million in cash and assumption of certain liabilities.
The Houston power company will sell the Danskammer facility to ICS NY Holdings LLC for $3.5 million in cash and assumption of some liabilities. Danskammer was deemed inoperable after it was damaged by Superstorm Sandy. It will be retired and ICS eventually will demolish its remaining structures and remediate the site.
Dynegy is in the process of communicating with employees whose jobs will be affected by the sales. About 70 jobs will be eliminated as a result of the Danskammer plant closure, company spokeswoman Katy Sullivan said.
LDH Energy has agreed to operate the Roseton plant under the terms of an expired union contract as modified by Dynegy's last offer to the International Brotherhood of Electrical Workers union made Nov. 7. Sullivan said that offer has not been accepted by the union.
The sales result from a U.S. Bankruptcy Court-supervised auction. A hearing is set Dec. 21 for the court to consider approving the sales. There are also some pending closing conditions and regulatory approvals.
Dynegy filed for Chapter 11 bankruptcy protection in July after years of falling electricity prices and debt that surpassed $5 billion last year.
Shares of Dynegy rose 3 cents to end at $18.53.