UPDATE: Alinta Energy Receives Trade Bids

Distressed power company Alinta Energy Group (AEJ.AU) said Monday it has received a number of bids for its whole business and individual assets.

The owner of 12 operational power stations said it expects to talk with its lenders this week about the trade bids and other options for reducing its debt. The company, which warned in June its loan covenants may come under pressure, has also been considering an equity raising.

"The bids remain confidential, and only capable of acceptance subject to a number of terms and conditions including access to black box due diligence information and consideration by lenders," Alinta said in a statement.

Alinta said on June 23 that it had received a number of indicative takeover bids as it warned that its loan covenants could come under pressure and it had asked its lenders to vary them.

Any buyer of Alinta would have to take on about A$3 billion in debt, with the company currently trading at a market value of around A$43 million after its securities were hammered in the wake of the global financial crisis.

The former satellite fund of failed investment house Babcock & Brown Ltd. said in April it had hired Lazard to examine ways to reduce its heavy debt load, including potential asset sales and capital management opportunities.

UBS AG is advising Alinta on the asset sales process.

-By Rebecca Thurlow, Dow Jones Newswires; 61-2-8272-4679; [e-mail]