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GenOn Energy Bankruptcy DS Approved

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The U.S. Bankruptcy Court issued an order approving GenOn Energy’s Disclosure Statement and scheduled a November 13, 2017 hearing to consider the Second Amended Joint Chapter 11 Plan of Reorganization, with objections due by November 6, 2017.

According to the Disclosure Statement, “Through the Plan, the Debtors will, among other things: (a) equitize approximately $1.8 billion in debt; (b) pay cash to Holders of Allowed GAG Notes Claims at an agreed-upon discount to par; (c) transition to a standalone enterprise with a leaner capital and operating structure that is better suited for today’s market challenges; and (d) implement a global settlement of potential claims and causes of action against NRG. This settlement provides substantial cash and non-cash consideration, including a handover of NRG’s 100% equity position in GenOn, a $261.3 million cash contribution, a pension contribution worth approximately $13.2 million, a $27.8 million credit against amounts GenOn owes under the Shared Services Agreement….The Plan provides for the reorganization of the Debtors as a standalone entity separate from NRG and will significantly reduce long-term debt and annual interest payments and preserve the Debtors’ existing liquidity, resulting in a stronger, de-levered balance sheet.”

In addition, “Moreover, through the NRG Settlement, it will resolve all potential claims against their non-Debtor parent, NRG, for substantial cash and non-cash consideration that will give the Reorganized Debtors a true ‘blank slate’ upon emergence. Specifically, the Plan contemplates a restructuring of the Debtors through a debt-for-equity conversion, together with certain other forms of consideration and the possibility of a sale of some or all of the Debtors’ assets pursuant to a marketing process. The key terms of the Plan are as follows: A. Substantial Debt-for-Equity Exchange. A key element of the Plan is the agreement of the Consenting GenOn Noteholders to convert the GenOn Notes Claims into New Common Stock (along with, potentially, receiving other forms of consideration).”

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The post GenOn Energy Bankruptcy DS Approved appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.


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