SSG Capital Advisors (“SSG”) served as the investment banker to EFS Parlin Holdings (“Parlin” or the “Company”) in the sale of its Interconnection Rights to TigerGenCo (“TigerGenCo”). 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 2023.

The Company was formed in 2007, when Parlin acquired the power plant from Calpine Corporation. The Company 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. Parlin generated and sold electric energy, capacity, and reactive power into the wholesale markets operated by PJM Interconnection, L.L.C. (“PJM”), which manages electricity systems for 13 states in the eastern United States.

While the Company had a strong track record of positive performance, financial challenges affected operations. Parlin had relied on capacity sales to drive the majority of its revenue and profitability. However, the clearing prices in capacity auctions significantly 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 Parlin 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, the Company filed for Chapter 11 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 valuable interconnection rights was the best option. SSG’s extensive Chapter 11 transaction experience and knowledge of the industry resulted in a process where value was maximized in an expedited timeframe.

TigerGenCo is a growing developer, owner and operator of power generation and energy infrastructure projects.

Other professionals who worked on the transaction include:

• J. Cory Falgowski, Erich N. Durlacher and Kelsey E. Burgess of Burr & Forman LLP, bankruptcy counsel to EFS Parlin Holdings, LLC;
• Tyler Brown of Latham & Watkins LLP, energy regulation counsel to EFS Parlin Holdings, LLC;
• Jeremy L. Retherford and David K. Bowsher of Balch & Bingham LLP, counsel to TigerGenCo, LLC;
• John T. Carroll, III of Cozen O’Connor, counsel to PJM Interconnection, L.L.C.; and
• Tobey M. Daluz of Ballard Spahr LLP, counsel to the landlord of EFS Parlin Holdings, LLC.