SSG Capital Advisors served as the investment banker to EFS Parlin Holdings in the sale of its interconnection rights to TigerGenCo, a developer, owner and operator of power generation and energy infrastructure projects. The sale was effectuated through a Chapter 11 Section 363 process in the U.S. Bankruptcy Court for the District of Delaware. The transaction closed in December.
EFS Parlin Holdings was formed in 2007 it acquired a power plant from Calpine Corporation. EFS Parlin Holdings owned and operated a combined-cycle power plant located on a four-acre property in New Jersey. Originally a qualifying facility, the plant initially achieved commercial operation in 1991. EFS Parlin Holdings generated and sold electric energy, capacity and reactive power into the wholesale markets operated by PJM Interconnection, which manages electricity systems for 13 states in the eastern U.S.
While EFS Parlin Holdings had a track record of positive performance, financial challenges affected operations. EFS Parlin Holdings had relied on capacity sales to drive the majority of its revenue and profitability. However, the clearing prices in capacity auctions decreased and were at historical lows. Additionally, the company was negatively affected by Winter Storm Elliot, a severe winter storm that caused record cold temperatures in late December 2022. While EFS Parlin Holdings contends it complied with all of PJM’s emergency dispatch instructions associated with the storm, PJM imposed a severe non-performance penalty. In light of the multiple financial challenges facing its operations, EFS Parlin Holdings filed for Chapter 11 bankruptcy protection in May of 2023.
SSG was retained in June 2023 to conduct a marketing process during the bankruptcy and solicit offers from potential strategic and financial acquirers. After extensive marketing and discussion with numerous interested parties, the company determined that a bid from TigerGenCo for the interconnection rights was the best option.
Other professionals who worked on the transaction included:
- Cory Falgowski, Erich N. Durlacher and Kelsey E. Burgess of Burr & Forman, who served as bankruptcy counsel to EFS Parlin Holdings
- Tyler Brown of Latham & Watkins, who served as energy regulation counsel to EFS Parlin Holdings
- Jeremy L. Retherford and David K. Bowsher of Balch & Bingham, who served as counsel to TigerGenCo
- John T. Carroll III of Cozen O’Connor, who served as counsel to PJM Interconnection
- Tobey M. Daluz of Ballard Spahr, who served as counsel to the landlord of EFS Parlin Holdings