Pustilnikov files bankruptcy, stays AES site public auction
by Garth Meyer AES power plant owner Leo Pustilnikov staved off a foreclosure auction of the 51-acre property by filing for bankruptcy Tuesday. The auction was scheduled for Wednesday morning. Pustilnikov’s company, 9300 Wilshire, which submitted the Chapter 11 filing, is a more-than 20 percent owner of the site. AES, which sold the plant and surrounding acreage to Pustilnikov and 11 investors in 2020, indicated this week it may ask the courts to allow the auction to proceed. “In October 2022, AES filed a Notice of Default to initiate a non-judicial foreclosure (NJF) to collect outstanding amounts owed in connection with the sale,” an AES spokesperson told Easy Reader Tuesday in an email. “AES is exercising its rights under the transaction agreements, and the actions are consistent with the goal to conclude the sale of the site. Today, the owner filed for bankruptcy, which resulted in an automatic stay of the NJF. Notwithstanding the bankruptcy, AES continues to have a valid lease for the site and expects to continue operating the Redondo Beach generating units through December 31, 2023.” Attorney Victor Sahn, who represented 9300 Wilshire in the filing, said Wednesday, “Chapter…
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