April 13, 2016
The statement below has been issued by the PSEC’s eight other (non-Peabody) public power owners. Prairie State will continue its normal operations and remains focused on providing stable power for its owners and their municipal and electric cooperative members that is produced in a safe and environmentally responsible manner.
MEDIA STATEMENT FOR IMMEDIATE RELEASE
April 13, 2016
On April 13, 2016, Peabody Energy Corp. and certain of its affiliates filed for protection under the Federal Bankruptcy Code. Peabody is the parent company of Lively Grove Energy Partners, LLC, which owns an approximate five percent (5%) share of the Prairie State Energy Campus (PSEC), and was included in the filing. The plant and mining operations are managed and operated by the Prairie State Generating Company, LLC under the ownership of the Prairie State Energy Campus Management, Inc., which is controlled by the owners, with weighted votes in proportion to their ownership share.
In January of this year, Peabody announced an agreement to sell Lively Grove Energy Partners’ interest in PSEC to Wabash Valley Power Association. That sale was not finalized before the recent bankruptcy filing, and thus must be approved by the Bankruptcy Court. Pending that and other relevant determinations pursuant to the Bankruptcy Code, Lively Grove Energy Partners remains subject to the Participation Agreement executed by the project’s owners.
To date, Lively Grove Energy Partners, LLC has met the obligations of the Participation Agreement. The financial challenges being experienced by Peabody Energy have had no material impact on the other PSEC owners to date, and is not expected to in the future. Federal bankruptcy laws are complicated and the recent filing certainly requires the continued monitoring and active attention of the management committee. The remaining owners are working with legal counsel to understand all options and obligations as the bankruptcy proceedings move forward.