In Delaware on Wednesday, Optim Energy LLC had filed for bankruptcy protection, the Wall Street Journal said in a report. The energy business is owned by the investment company of Microsoft Corp founder and billionaire Bill Gates. Optim stated in its bankruptcy filing that the firm could not longer obtain the consent it required in order to borrow additional funds under a credit facility. The 19-page bankruptcy petition filed with the US. Bankruptcy Court in Wilmington, Delaware also revealed that Optim does business under the trade name EnergyCo LLC.
Company officials said in the bankruptcy filing that Optim Energy needed the Microsoft founder's investment arm, Cascade Investment LLC, to provide them consent to make additional borrowings under the credit facility of the company.
"Cascade has denied the company's request to permit further borrowings," company officials stated in its court papers.
Optim Chief Executive Officer Nick Rahn also stated in the court papers, which Reuters said it read, "The current depressed economic environment of the electric power industry - particularly with respect to coal-fired plants- and the Debtors' liquidity constraints have resulted in continuing losses that, simply put, have left the Debtors without alternatives."
When WSJ contacted Optim for comment regarding its bankruptcy filing, a lawyer representing the energy firm refused to provide one immediately.
According to the petition, Optim currently has a $713 million bank loan among its many corporate debts. Officials of Optim also said that they intended to take out a bankruptcy loan worth $115 million to fund the company's restructuring efforts.
The court papers identified Optim's owner as ECJV Holdings LLC, of which incidentally has Cascade as one of its minority shareholders at 10% interest stake.
WSJ said the law firm of Bracewell & Giuliani is currently handling Optim's bankruptcy filing. Optim also named Barclays Capital LLC and Protiviti Inc as its financial and restructuring advisers respectively.
