Danskammer HoldCo LLC Bankruptcy Case

Danskammer Energy, LLC filed Chapter 11 in Delaware on June 10, opening Case No. 26-10954-KBO after, according to Law360, nixing its New York power-plant redevelopment plans. The Chapter 11 petition lists $10 million to $50 million of assets and $10 million to $50 million of liabilities, with affiliated debtors Danskammer HoldCo LLC, Danskammer Intermediate Holdings LLC, and Danskammer Holdings LLC.

The immediate creditor map is concentrated around energy-market and local-tax obligations: New York Independent System Operator is listed at about $11.8 million, followed by Orange County at about $764,000, the Town of Newburgh at about $204,000, CAMS Texas at about $149,000, and Central Hudson Gas & Electric at about $106,000. The petition authorization says the debtors intend to pursue either a restructuring or a sale of the Danskammer entities’ assets under section 363, making this an early-stage asset-value and process-control case rather than a purely administrative filing.

Danskammer is operating in Chapter 11 while pursuing a sale of substantially all assets and completing final first-day relief, against the backdrop of a planned generating-station retirement that could occur as early as August 1, 2026. Danskammer Energy and its holding-company affiliates commenced the cases on June 10 after changes in the NYISO capacity market and the addition of new transmission capacity were projected to reduce capacity revenue by 45%, undermining the economics of the 532 MW gas-fired plant. The immediate liquidity pressure came from NYISO's effort to collect a disputed $13.45 million capacity-shortfall penalty: NYISO began garnishing capacity revenue in June, including approximately $1.49 million for May, and the debtors identified that collection activity as the filing trigger. The debtors entered Chapter 11 intending to market substantially all assets through a section 363 process, as described in the Gray first-day declarationDkt. 12.

The case remains in its operational-stabilization phase rather than at a disclosed sale or plan milestone. The court has authorized payment of up to $3.10 million of prepetition taxes and fees under the final tax orderDkt. 64 and continued use of the debtors' existing accounts and cash-management system under the final cash-management orderDkt. 66. The debtors have also submitted uncontested proposed final relief permitting up to $283,474.57 of critical-vendor payments conditioned on continued customary trade terms through the critical-vendor certificationDkt. 67, while their utility certificationDkt. 68 reflects a consensual adequate-assurance framework built around an $87,159 escrow deposit. A second-day hearing is scheduled for July 22 at 1:00 p.m. ET, followed by an omnibus hearing on August 20; the next consequential development is whether the case advances from these operating protections to a defined sale timetable as the earliest plant-retirement date approaches.

Danskammer HoldCo LLC

Danskammer HoldCo LLC

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Danskammer opens Chapter 11 after scrapping power-plant revamp

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