Optim Energy LLC has abandoned the bankruptcy sale of its two Texas power plants and instead will restructure under a plan that leaves Bill Gates's private-equity firm in control of the company, Dow Jones Newswires reported yesterday. Optim is controlled by the Microsoft Corp. co-founder's Cascade Investment, which had set a floor price for the plants at $355 million, subject to higher bids at auction. But after an extensive marketing campaign, Optim's lawyers said on Wednesday in court papers, the company didn't receive any satisfactory bids for the plants. “The reorganizing debtors have now determined, in consultation with their advisers, independent directors and the consultation parties, that the best path forward is to terminate the sale process and instead seek confirmation of the plan," Optim said in court papers. The plan will give the senior lenders, which includes Cascade, ownership of the reorganized company, a second-lien note plus residual cash.
