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GenOn Energy Furtherance Sought

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GenOn Energy filed with the U.S. Bankruptcy Court an emergency motion for entry of an order (i) directing certain actions in furtherance of the GenMa Settlement, and appointing a mediator.

The motion explains, “The Court has twice entered orders in furtherance of the GenMA Settlement, most recently directing the GenMA Settlement Parties to ‘use commercially reasonable efforts to consummate the GenMA Settlement no later than January 31, 2018….Among other consequences, GenMA incurs approximately $100,000 of incremental interest expense related to the PTCs for every additional day it takes to close the settlement, resulting in a corresponding decrease in the value of GenOn’s direct equity interest in GenMA. Since the January 31, 2018 deadline, nearly $3 million of interest has accrued that should have been avoidable. The Debtors and GenMA recognize that time is of the essence, and have been working diligently to turn the GenMA Settlement Term Sheet (which was approved as part of the Plan) into definitive documents for execution and consummation of the GenMA Settlement….The Debtors and GenMA have provided considerable due diligence to the GenMA Owner Lessors. GenMA even agreed to pay for an energy consultant to the GenMA Owner Lessors to help facilitate and expedite the GenMA Owner Lessors’ diligence and deliberations, in an effort to help the GenMA Owner Lessors move expeditiously….The Debtors and GenMA stand ready to meet and negotiate anytime, anywhere, with principals with settlement authority (together with their advisors), to finalize all open points, complete definitive documentation, and consummate the settlement.

The Debtors and GenMA are clearly incentivized to consummate the GenMA Settlement on a fast track, and do whatever it takes to do so. The Debtors and GenMA are willing to work reasonably and around the clock—as they have attempted to do to date—with the GenMA Owner Lessors to resolve these issues. But the time has come for all parties to put all issues on the table for expeditious, good faith resolution, close the GenMA Settlement, and move forward with creating value at GenMA, for the benefit of the GenMA Owner Lessors and the Debtors and their stakeholders. Thus, the Debtors file this Motion because they believe the Court’s assistance is necessary to facilitate the timely consummation of the GenMA Settlement as provided under each of the Confirmation Order and the GenMA Settlement Order. To that end, the Debtors ask this Court to enter an order appointing a mediator and directing the Debtors, GenMA, and the GenMA Owner Lessors to engage in good faith, expeditious negotiations with the mediators’ assistance so as to consummate the GenMA Settlement by March 15, 2018.”

Read more GenOn Energy bankruptcy news.

The post GenOn Energy Furtherance Sought appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.


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