Burgess BioPower: Biomass Plant Restructures PPA Dispute Through Chapter 11 Plan
Burgess BioPower Feb 2024 Delaware ch. 11 addressed PPA dispute liquidity stress, obtained DIP financing, and confirmed a plan.
In this article
Burgess BioPower, LLC and Berlin Station, LLC filed chapter 11 petitions in the District of Delaware on February 9, 2024. The case centered on a 75-megawatt biomass-fueled power plant in Berlin, New Hampshire, whose revenue depended on a power purchase agreement (PPA) with Eversource. A dispute over accumulated "over-market" cost recovery under the PPA, combined with the failure of legislative relief, triggered the filing. The debtors pursued a court-supervised sale process that produced no qualifying bids, then confirmed a debt-for-equity recapitalization plan under which lenders took ownership of the plant.
| Debtor(s) | Burgess BioPower, LLC and Berlin Station, LLC |
| Court | U.S. Bankruptcy Court, District of Delaware |
| Case Number | 24-10235 |
| Judge | Hon. Laurie Selber Silverstein |
| Petition Date | February 9, 2024 |
Plant and Contract Context
Berlin Station. Burgess BioPower is a 75-megawatt biomass-fueled power plant in Berlin, New Hampshire—often referred to as “Berlin Station”—built on the site of a former Fraser Papers pulp mill on the Androscoggin River; the facility and site history are described in a Berlin Station project overview and a Berlin Station plant profile. Early development coverage described a roughly $275 million construction project and a 2011 groundbreaking in a 2011 groundbreaking report.
| Attribute | Detail (reported) |
|---|---|
| Capacity | 75 MW |
| Location | Berlin, New Hampshire |
| Fuel | Wood and other biomass solids |
| Site history | Former Fraser Papers pulp mill site |
| Development / in-service | Groundbreaking reported in 2011; commercial operations reported in 2013 |
PPA and offtake. Project summaries described a brownfield redevelopment built around a long-term offtake contract, with construction activity starting after a 2011 financing close and commercial operations beginning in 2013 (Berlin Station project overview; operations manager profile).
| Development / contract element (reported) | Detail |
|---|---|
| Site | Former Fraser Papers pulp mill location in Berlin |
| Construction / in-service timing | Financing close reported in 2011; commercial operations reported in 2013 |
| Construction cost | ~$275M (reported) |
| Offtake contract | Long-term PPA reported in development coverage |
PPA Dispute and Filing Drivers
PPA dispute. The dispute under the plant's PPA with Eversource tightened payments and liquidity through recoupment tied to “over-market” costs and the failure of a legislative relief effort; the dispute was also reported in a chapter 11 filing recap and a PPA dispute report.
Stakeholders. The plant's fuel procurement is tied to regional loggers and biomass suppliers, the plant is a meaningful part of Berlin's tax base, and the offtake counterparty controls the payment stream.
The facility was reported as consuming roughly 500,000 to 800,000 green tons of biomass wood chips annually, and early development coverage described a similar magnitude of annual wood consumption. A 2019 report cited in filing coverage described Burgess as supporting 240 jobs and generating $43 million annually for New Hampshire.
| Stakeholder group | Reported relationship to the plant |
|---|---|
| Biomass suppliers / loggers | Fuel supply chain supporting large annual purchases and hundreds of thousands of tons of annual consumption |
| Plant workforce | Dozens of direct employees at the facility |
| City of Berlin | Plant is a meaningful element of the local tax base |
| Utility/offtaker | PPA counterparty and payment gatekeeper |
Capital Structure and Project-Finance Constraints
Capital structure. The First Day Declaration described roughly $115 million of senior secured debt and roughly $29.7 million of subordinated secured debt outstanding around the petition date. Approximately $145 million of funded debt later converted to equity in a recapitalization plan.
The First Day Declaration described the PPA dispute as tied to accumulated "over-market" amounts and a contractual reduction factor exceeding $171 million by late 2023.
| Item (as described in filings) | Approx. amount |
|---|---|
| Senior secured debt | $115.0M |
| Subordinated secured debt | $29.7M |
| Funded debt conversion discussed in plan coverage | ~$145M |
| PPA "reduction factor" / accumulated "over-market" amount | >$171M by Dec. 2023 (described) |
DIP Financing and the Sale “Toggle”
DIP financing. The DIP Motion described a DIP facility authorized on a final basis at $54 million, including an $18 million delayed-draw new money component plus roll-up and refinancing features. An $18 million DIP component was also reported as part of the financing.
| DIP component (as described in filings) | Amount |
|---|---|
| Delayed-draw new money term loan | Up to $18.0M |
| Roll-up / refinancing elements | Balance of total authorized facility |
| Total DIP facility (final basis) | $54.0M |
DIP economics. The DIP Motion described DIP pricing at 12% per annum with a default rate add-on, along with a short maturity framework keyed to a sale transaction or a plan effective date.
The DIP Motion also described an upfront fee, an unused line fee, and agency fees.
| DIP term (selected) | Reported economics / control feature |
|---|---|
| Interest rate | 12% per annum |
| Default rate add-on | +2% (reported) |
| Maturity construct | Earliest of a short outside date, a sale, or a plan effective date |
| Fees | Upfront and unused-line fees described |
Sale process. The court-supervised sale process had a May 6, 2024 bid deadline and produced no qualifying bids by that deadline.
| Sale milestone (reported) | Date |
|---|---|
| Bid deadline | May 6, 2024 |
| "No qualifying bids" outcome | Reported in late May 2024 |
| Sale hearing rescheduled | June 6, 2024 (from May 21) |
Debt-for-Equity Plan and Creditor Treatment
Plan outcome. Coverage described a debt-for-equity plan track in which funded debt converted into equity and ownership concentrated with the DIP lender constituency. A proposed plan framework described converting roughly $145 million of debt to equity and a 99%–1% equity split between DIP lenders and senior noteholders. Separate coverage also described senior lender claims around $145 million and no recovery for general unsecured creditors.
Coverage of the disclosure statement process described a May 8, 2025 plan supplement deadline, a May 15, 2025 voting deadline, and a June 2, 2025 hearing date.
| Stakeholder class (high-level; reported) | Reported treatment / outcome |
|---|---|
| DIP lender group | Receives controlling ownership stake |
| Senior secured / senior notes | Receives minority equity stake |
| General unsecured creditors | 0% recovery |
| Existing equity | Canceled |
Operations, Municipal Taxes, and Community Pressures
Post-confirmation operations. Post-confirmation reporting described Olympus Power as manager after the transition from CS Operations, along with a new general manager and staff retention in the mid-20s.
Post-confirmation reporting described the plant as purchasing around 800,000 tons annually from more than 115 suppliers and characterized it as the largest biomass plant in the Northeast. Industry stakeholders emphasized the same systemic role in a timberland owners statement focused on maintaining a market for low-grade timber and sawmill residuals.
Local reporting cited more than $50 million in annual economic impact and 230+ jobs supported, while other reporting cited $70+ million and 240+ jobs.
| Reported local impact metric | Conway Daily Sun | NH Business Review |
|---|---|---|
| Annual economic impact (reported) | $50+ million | $70+ million |
| Jobs supported (reported) | 230+ | 240+ |
Municipal taxes. The city's tax payment request became a public dispute during the bankruptcy. Later reporting described negotiated tax payment arrangements with varying figures: one report described April 2024–April 2025 $1.3 million, while another described April 2024–April 2026 $2.4 million.
| Reported tax arrangement | Source |
|---|---|
| $1.3M for April 2024–April 2025 | Conway Daily Sun |
| $2.4M total for April 2024–April 2026 | NH Business Review |
Policy-linked pricing. Coverage described a broader debate about biomass economics, including accumulated "over-market" costs and whether ratepayers should bear costs.
Key Timeline
| Date | Milestone |
|---|---|
| Feb. 9, 2024 | Chapter 11 petitions filed |
| May 6, 2024 | Reported bid deadline |
| Late May 2024 | No qualifying bids reported |
| Mar. 19, 2025 | Second Amended Plan and Disclosure Statement filed |
| June 2025 | Confirmation Order entered |
Frequently Asked Questions
When did Burgess BioPower file for bankruptcy, and where was the case filed?
Burgess BioPower, LLC and Berlin Station, LLC filed chapter 11 petitions on February 9, 2024 in the U.S. Bankruptcy Court for the District of Delaware; the filing was also covered in a chapter 11 filing recap.
What is the “Berlin Station” asset in this case?
Berlin Station is a 75-megawatt biomass plant in Berlin, New Hampshire, and a Berlin Station project overview describes its development and site context.
Why did the company file chapter 11?
The filing was tied to an Eversource PPA dispute that affected payment and liquidity; the same dispute-driven filing narrative was also covered in a PPA dispute report.
What did “over-market” costs mean in this dispute?
Coverage described accumulated “over-market” charges and recoupment mechanics that affected payment during the dispute.
How much DIP financing was involved?
An $18 million DIP component from senior secured lenders was reported, while the Final DIP Order authorized a larger total DIP facility that included roll-up and refinancing features in addition to new money.
Did the debtors try to sell the plant during bankruptcy?
Yes. The sale process had a May 6, 2024 bid deadline and produced no qualifying bids by that deadline.
What did the plan do for lenders and other creditors?
The plan was described as a debt-for-equity conversion of roughly $145 million of funded debt, with a controlling lender stake, a smaller noteholder equity interest, and no recovery for general unsecured creditors.
Who runs the plant after confirmation?
Post-confirmation reporting described Olympus Power as manager, identified a new general manager, and described staff retention in the mid-20s.
How did local taxes factor into the restructuring?
Local reporting described a tax payment dispute and later negotiated payment frameworks, with differing figures across sources including April 2024–April 2025 $1.3 million and April 2024–April 2026 $2.4 million.
Who is the claims agent for Burgess BioPower?
Epiq Corporate Restructuring, LLC is the claims and noticing agent for the Burgess BioPower bankruptcy cases. Stakeholders may visit the Epiq case page or call Epiq's hotline for filing deadlines, proof-of-claim forms, and docket updates.
For more chapter 11 case coverage, visit the ElevenFlo bankruptcy blog.
This article was researched and written with AI assistance, using court filings, public records, and news sources. AI-generated content can contain errors. Verify all information against primary sources before relying on it. This is not legal or financial advice. Read our full disclaimer.