Court order hands US Bank control over Aspen Power biomass power plant in Lufkin, Texas, after company fails to make payments; order stipulates judge must approve any potential sale
May 27, 2013
(Industry Intelligence Inc.)
A court order has handed control of utility firm Aspen Power LLC’s biomass power plant in Lufkin, Texas, to U.S. Bank National Association (U.S. Bank), as trustee for investors, KTRE reported on May 23.
Aspen Power was issued US$53.3 million-worth of revenue bonds under a loan agreement with the Angelina and Neches River Authority Industrial Development Corp. in order to build the plant. According to court documents, the power company has not made any payments since February 2012, KTRE noted.
Aspen Power, which was headed by Danny Vines, opened in August 2011 and shut its doors in February 2012, during which time the city of Lufkin invested $250,000 in improvements for the project.
U.S. Bank filed a notice earlier this month indicating its intent to begin foreclosure proceedings again Aspen Power, KTRE reported.
At the May 23 hearing in which Judge Barry Bryan signed the order transferring control of the plant to U.S. Bank, many of the parties in attendance were interested in receiving court orders guaranteeing they would be paid in full, according to KTRE.
The court order stipulates that Judge Bryan must approve any potential sale.
The primary source of this article is KTRE, Pollock, Texas, on May 23, 2013.