Lincoln Power Strikes $43 Million Bankruptcy Settlement With PJM

Bankrupt Lincoln Power LLC reached a $43 million settlement with its largest unsecured creditor, buoying the power plant operator’s hopes of finding a buyer for its assets.

PJM Interconnection, which runs the electricity grid that stretches from Washington to Chicago, asserted $39 million in penalty claims against Lincoln Power, alleging that two Lincoln plants in Illinois failed to generate enough power during a severe winter storm in December.

The penalties helped push Lincoln Power into bankruptcy. Lincoln Power said in a court filing that the ongoing dispute over the penalty would limit the price it could command for its assets ...