EFS Parlin Holdings, LLC

Client Profile

Founded in 2007, the Company owned and operated a combined-cycle power
plant located on a four-acre property in New Jersey. Originally a Qualifying Facility,
the plant initially achieved commercial operation in 1991. Parlin generated and sold
electric energy, capacity, and reactive power into the wholesale markets operated by
PJM Interconnection, L.L.C. (“PJM”), which manages electricity systems for 13
states in the eastern United States.

Situation

While the Company had a strong track record of positive performance, financial
challenges affected operations. Parlin had relied on capacity sales to drive the
majority of its revenue and profitability. However, the clearing prices in capacity
auctions significantly decreased and were at historical lows. Additionally, the
Company was negatively affected by Winter Storm Elliot, a severe winter storm
that caused record cold temperatures in late December 2022. While Parlin contends
it complied with all of PJM’s emergency dispatch instructions associated with the
storm, PJM imposed a severe non-performance penalty. In light of the multiple
financial challenges facing its operations, the Company filed for Chapter 11
protection in May of 2023.

Solution

SSG was retained in June 2023 to conduct an accelerated marketing process during
the bankruptcy and solicit offers from potential strategic and financial acquirers.
After extensive marketing and discussion with numerous interested parties, the
Company determined that a bid from TigerGenCo for the valuable interconnection
rights was the best option. SSG’s extensive Chapter 11 transaction experience and
knowledge of the industry resulted in a process where value was maximized in an
expedited timeframe.