Oaktree-Backed Power Plant Goes Bankrupt After Construction Spat

A Boston-area power plant backed by Oaktree Capital Management has landed in bankruptcy after losing a long-running legal feud over the plant’s construction.

Footprint Power Salem Harbor Development LP filed for Chapter 11 bankruptcy in Delaware on Wednesday night, listing assets and liabilities of as much as $1 billion each. The company runs a natural gas-fired power plant in Salem, Massachusetts that began operating in 2018.

The project ran into serious financial trouble last fall when a yearslong spat over construction delays and cost overruns ended in a $237 million arbitration award in favor of the company that built most ...