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La Paloma completes sale of gas-fired plant to Beal Bank

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La Paloma completes sale of gas-fired plant to Beal Bank

La Paloma Generating Co. LLC completed the sale of the 1,022-MW, combined-cycle, natural gas-fired La Paloma plant and associated interconnection facilities to a newly formed affiliate of Beal Bank USA.

The Beal Bank affiliate purchased the facility for a credit bid of $150 million and the assumption of certain liabilities Dec. 4.

In December 2016, La Paloma filed for Chapter 11 bankruptcy restructuring, saying it cannot continue to operate the power plant in California's "inhospitable" power market without relief from creditors. Rockland Capital Partners LLC owns a controlling portion of the ownership shares in La Paloma.

The Federal Energy Regulatory Commission approved the transaction Nov. 6, according to a Dec. 6 FERC filing. (FERC docket EC18-3)