After rejecting AGL’s bid, the ACCC also cautioned Origin Energy from making a bid for the Australian power generator, which is struggling under a $3.47 billion debt burden, a move which may see Sime Darby Bhd and Genting Bhd revive their bids
If the two Malaysian companies do not try again, Loy Yang's owners' only option is to approach other buyers with a discounted price or persuade their lenders to agree to a debt restructuring to avoid going into default.
The 2,000 megawatt coal-fired Loy Yang power station is the largest privately held generator in Australia.
The decision by the ACCC is bad news for CMS Energy and NRG Energy, which respectively own 49.6% and 25.4% of Loy Yang. Both have been selling assets to reduce debt following a credit crunch in the U.S. power sector after the collapse of Enron Corp.
