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.
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
Berlin Station asset profile (reported)
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
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
Stakeholder map (reported)
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.
Capital structure and disputed PPA amounts (as 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 sizing (new money vs. total authorized)
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
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.
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.
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?
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.
500,000 to 800,000 green tons https://nhtoa.org/nhtoa-reacts-to-burgess-chapter-11/
May 6, 2024 bid deadline https://www.nhpr.org/nh-news/2024-05-30/no-bidders-berlin-burgess-biomass-facility
$145 million of debt https://chapter11cases.com/blogs/news/biomass-power-plant-proposes-debt-for-equity-swap-in-delaware-bankruptcy-court-with-no-recovery-for-general-unsecured-creditors
$145 million https://www.conwaydailysun.com/berlin_sun/news/local/city-hopeful-burgess-biopower-continues-to-operate-as-court-oks-reorganization-plan/article_25c7a828-5494-495f-8238-642c7469b481.html
no recovery for general unsecured creditors https://www.nhbr.com/burgess-biopower-operates-with-court-approval/
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. See the disclaimer.