Hartford Business Journal

6 Hartford Business Journal • August 17, 2015 www.HartfordBusiness.com TOP STORY Glastonbury firm to build Mass. power plant Glastonbury construction firm Gemma Power Systems has received a $100 million contract to build a 200-megawatt power plant in Medway, Mass. Gemma will engineer and build the Simple Cycle Power Plant for Chicago energy firm Exelon Generation Co. Exelon already operates a 173-megawatt oil-fueled power plant on the 70-acre site. The contract is dependent upon Exelon getting all regulatory approvals for the project. Gemma has several other power plant construction projects underway, including one in Texas and two in Pennsylvania. "Exelon is a new customer for us and we're gratified with the confidence they have shown in us to construct this essential power facility for them," said William Griffin, CEO of Gemma. BANKING & FINANCE Hartford Club reaches settlement in $1.4M foreclosure The 142-year-old Hartford Club has reached a settlement with its lenders to stave off foreclosure over $1.4 million the private club owes in unpaid debts, according to court documents. Days after the Connecticut Appellate Court denied Hartford Club's appeal to prevent the sale of its home at 46 Prospect St. in downtown Hartford, the club and Berkshire Bank struck a deal to keep the institution in its own home and, presumably, to pay off a portion of the debts. The details of the settlement were not disclosed and had yet to be finalized. The club ran into trouble in April 2014 when — after not making any pay- ments for 18 months on $1 million owed to Berkshire Bank — a Connecticut Superior Court judge ordered in June the Prospect Street property to be sold in foreclosure. The club, which famously had Mark Twain as a member, appealed that decision and had been trying to work out a deal with its lenders. BIOSCIENCE $10M will help Jax create, share disease models The Jackson Laboratory, which has its genomic medicine research facility in Farmington, said it will use a new $10 million federal grant to launch a new research center. The five-year National Institutes of Health grant will help seed the Center for Precision Genomics at Jackson Laboratory, Jax said last week. The genetic-research nonprofit said it envisions the center will be a hub for geneticists, technology experts, biologists and others to collaborate on develop- ing precision mouse models of disease. The center will collaborate with researchers from seven universities and medical centers across the country, including UMass Medical School in Worces- ter, Mass. Other partners include Cedar Sinai Medical Center, Columbia Univer- sity Medical Center, Emory University, Nationwide Children's Hospital and the University of California's San Diego and San Francisco campuses. CT Children's forms esophageal partnership with Mass. biotech Connecticut Children's Medical Center has formed a pre-clinical program with a Massachusetts biotech to develop a process for repairing or replacing the human esophagus, the two said. The Hartford-based hospital and Holliston, Mass.-based Harvard Apparatus Regenerative Technology (HART) will work with bioengineered scaffolds, which use a patient's cells to repair or replace the esophagus (the tube that connects the mouth to the stomach). The goal is to find a way to treat a rare condition known as esophageal atre- sia, in which some of the esophagus is missing, making it difficult for babies to swallow and sometimes breathe. If the collaboration results in any inventions or intellectual property, Connecti- cut Children's will license it exclusively to HART. LEGAL & COURTS Southington plastic distributor files Ch. 11 An overleveraged capital structure and significant drop in petrochemical prices have forced Southington's Thornton & Co. Inc. to file for chapter 11 bank- ruptcy, the plastics distributor said. With liabilities and assets each ranging from $10 million to $50 million, TCI filed for bankruptcy protection last week in Hartford. The company said it has between 100 and 199 creditors. Founded in 1994, TCI said it had approximately $200 million in sales last year. The company said in a statement that it was unable to convince its lenders, led by People's United Bank, to approve a plan aimed at resolving its financial problems. The company said it felt forced to file for bankruptcy so that its suppliers that have made accommodations during its financial struggles would receive some money back. TCI said it is soliciting purchase and equity-investment offers. The company has retained Gordian Group LLC as its financial advisor and investment banker. INSURANCE The Phoenix posts mixed 2Q The second-quarter flow of red ink flattened for The Phoenix Cos. Inc., but the Hartford insurer's shrinking financial-reporting expenses were offset by a spike in mortality costs. For three months ended, Phoenix said it posted a net loss of $22.6 million, or $3.93 a diluted share, vs. a net loss of $22.4 million, or $3.90 a share, sustained the same quarter last year. Second-quarter revenues, however, rose to $422 million vs. $413.1 million a year ago. "The net loss was driven primarily by unfavorable mortality and financial reporting expenses that remain elevated but are beginning to decline,'' CEO James D. Wehr said. "These factors were partially offset by the positive impact of higher interest rates." Phoenix's financial-reporting costs were $31 million lower in the first half of 2015 than the same period a year ago. Phoenix has been overhauling and updating its financial-reporting apparatus after catching up on several years of earnings restatements tied to a series of accounting errors. The insurer has pledged to trim $110 million from overhead by late 2017. MANUFACTURING Glastonbury tooling maker inks Pratt contract Glastonbury's Habco Industries said it has signed a license agreement to supply tooling to East Hartford aerospace engine manufacturer Pratt & Whitney. Habco said it will be the exclusive supplier for commercial tooling in support of Pratt's legacy engine programs, which include JT3D, JT8D, JT9D, PW2000, PW4000 and PW6000 models. Terms of the agreement, which began in the second quarter, were not disclosed. Loon Medical Inc. in Tolland names CEO Loon Medical Inc. in Tolland has hired George Panciera as CEO. Loon, which manufactures the CareSentinel line of caregiver support prod- ucts, said Panciera brings 35 years of experience in product and process devel- opment, business transformation, and sales and marketing. Most recently, he was president of Bolton's HDH Technologies LLC, where he led a team developing and marketing a low cost, hand-sanitizing compliance management system. Panciera earned an MBA at Stanford University, master's degree in computer science from Rensselaer Polytechnic Institute, and bachelor's degree in engi- neering from Cornell University. BY THE NUMBERS $24M The amount of money the U.S. Department of Health and Human Services says Connecticut should repay the agency because of improperly billed Medicaid services. 1.7% The ratio of mortgaged Connecticut homes that were in foreclosure in June, according to Corelogic. $1 million The amount of money the state expects to save from offering smaller incentives during the sales-tax holiday that runs through Aug. 22. 6 The number of months Enfield solar encapsulant maker STR Holdings has to increase its share price to at least $1, or the company could face a New York Stock Exchange suspension and delisting. TOP 5 MOST READ on HartfordBusiness.com ■ Life insurer: Hartford ranks highly for retirees ■ $10M will help Jax create, share disease models ■ Southington plastic distributor files Ch. 11 ■ Glastonbury firm to build Mass. power plant ■ Slimmed down CT tax holiday on deck STAY CONNECTED For breaking and daily Greater Hartford business news go to www.HartfordBusiness.com. 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