In a court-ordered auction held March 19, a federal bankruptcy court judge selected a proposal by LG&E Energy Corp. to lease the generating assets of Big Rivers Electric Corp.
LG&E Energy will lease about $1.3 billion of the generating assets of the bankrupt Henderson, Ky., cooperative for 25 years, and provide power to Big Rivers to serve its member cooperatives and 90,000 customers.
Previously, it appeared PacifiCorp would get the lease agreement, which is the centerpiece of the Big Rivers' reorganization plan. But U.S. District Judge Jennifer B. Coffman denied a request by PacifiCorp to move the Big Rivers case from bankruptcy court to federal district court. PacifiCorp had alleged that improper contacts between a court-appointed examiner and Bankruptcy Judge J. Wendell Roberts had harmed customers and creditors of in the bankruptcy process. It was Judge Roberts who had approved a request by LG&E Energy to establish a bid procedure. But bidders were required to assure payment of at least $10 million more than the deal between Big Rivers and PacifiCorp.
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