A downtown Tampa company, owner of the biggest power plant in Arkansas, has filed for Chapter 11 bankruptcy, listing assets of more than $500 million and more than $1 billion in debts, in U.S. Bankruptcy Court in Wilmington, Del., Reuters and Bloomberg news services reported.
Entegra Power Group LLC, based at 100 S Ashley Drive, seeks protection from creditors amid falling natural gas prices, competitive pressure and problems paying its bills, including a $1.31 billion loan through Wells Fargo & Co.
The pipeline and power plant operator hopes to reorganize while in Chapter 11. Entegra CEO Michael Schuyler, in a court filing, said the company "attempted to obtain new senior secured financing from outside lenders but determined that such financing could not be obtained on commercially reasonable terms" before a bankruptcy.
Entegra was formed in June 2005 as an independent power company to own and operate two of the largest independent power plants in the United States, the Gila River Power Station in Arizona and the Union Power Station in southern Arkansas. These two power stations are similar in size and design, and each is home to four natural gas-fired combined cycle facilities that can produce approximately 2,200 megawatts of power.
Entegra also owns and operates the 42-mile Trans-Union Interstate Pipeline, which flows gas from Louisiana to the Union Power Station.