GenOn Energy filed with the U.S. Bankruptcy Court a motion for entry of an order (i) authorizing and directing certain actions in furtherance of the Company’s GenMa settlement and (ii) estimating U.S. Bank’s claims.
The motion notes, “The GenMA Settlement provides for, among other things: the payment of: (a) the outstanding Lessor Notes in the aggregate principal amount of approximately $326 million, plus accrued interest, and no Make-Whole Premium, and in turn distribution of the proceeds received from the sale of the Lessor Notes to the outstanding Series C PTCs under the Pass Through Trust Agreement; and (b) approximately $1.2 million in accrued interest on the Lessor Notes and in turn distribution of such amounts to the applicable PTC holders in accordance with the Pass Through Trust Agreements; the application of the J.P. Morgan Letter of Credit Proceeds to fund, in part, the purchase of related Lessor Notes; a $55 million bridge facility provided by GenOn to GenMA, with the opportunity for the Owner Lessors to provide or replace that facility at par and without any premium or penalty; $57.5 million in new money and credit support from GenOn and NRG for the benefit of the Owner Lessors; and the settlement of all outstanding litigation and objections related to the GenMA Leveraged Lease Disputes, including mutual releases by and among all settling parties.”
The Court scheduled a January 17, 2018 hearing on the settlement motion.
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