NRG Energy's Gregory Power Partners LLC objected to the bankrupt company Sherwin Alumina's November 10 emergency motion at the bankruptcy court to expedite the hearing and objection deadlines on its bankruptcy reorganization and asset sale plan.
Alumina producer Sherwin Alumina has been in Chapter 11 protection at the U.S. Bankuptcy Court for the Southern District of Texas since January 11. Gregory Power Partners (GPP) supplied the alumina refiner with steam and some power from an on-site, 550-MW cogeneration plant. NRG claimed, the operation of that cogen plant is endangered by Sherwin Alumina's actions.
Sherwin Alumina is owned by Glencore Ltd., which is now eyeing some assets out of the bankruptcy case. Sherwin Alumina would source most of its bauxite supplies for its facility from Noranda, with other bauxite supplied by Glencore itself.
GPP said in its objection that Sherwin Alumina is proposing to collapse the 60+ day, two-stage process for approving a disclosure statement and confirming a reorganization plan into a truncated single hearing heard on an emergency basis.
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Sherwin Alumina in its November 10 disclosure statement said: "The Energy Supply Agreement required Sherwin Alumina to purchase steam on uneconomic and unreasonable terms. The Energy Supply Agreement also did not adequately compensate Sherwin Alumina for the diminished revenues and high equipment repair costs associated with the prolonged outages that regularly delayed production at the Main Facility."
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