Burgess BioPower has terminated its purchase power agreement with Eversource and filed for chapter 11 voluntary bankruptcy, the company said on Feb. 9, New Hampshire Business Review reported. Burgess BioPower had warned it faced bankruptcy after the New Hampshire legislature failed to overturn Gov. Chris Sununu’s (R) veto of a bill that would have eliminated the requirement that the company repay $71 million in overmarket costs. In a release, Burgess BioPower said that Eversource had failed to make required payments to Burgess BioPower. But Eversource said that it began reducing payments to Burgess BioPower last month, as required to recoup the $71 million. As part of its filing with the U.S. Bankruptcy Court for District of Delaware, Burgess BioPower said it has entered into a restructuring agreement with its senior secured lenders that calls for a substantial deleveraging or sale of the company. The lenders have agreed to provide $18 million dollars in debtor-in-possession financing that will allow the company to operate the biomass plant and pay its obligations while in bankruptcy.
