The U.S. Bankruptcy Court issued a revised and modified order approving GenOn Energy’s Third Amended Joint Plan of Reorganization.
The revised and modified order states, “The Plan is deemed modified to include and incorporate the APA as part of the Plan Supplement. Pursuant to section 1127 of the Bankruptcy Code, the proposed modifications to the Plan constitute technical changes, or modifications that do not otherwise materially and adversely affect or change the treatment of any other Claim or Interest. The proposed modifications to the Plan comply with section 1127(b) of the Bankruptcy Code, and with sections 1122, 1123, and 1129 of the Bankruptcy Code. The Debtors have obtained all necessary consents and approvals under the Plan for entry into the APA as a Third-Party Sale Transaction, including by obtaining agreements not to exercise negative consent rights with respect to from requisite GenOn Noteholders, and the Debtors are accordingly permitted under the Plan and the Confirmation Order to enter into the APA as a Third-Party Sale Transaction.”
In addition, “The APA is an essential element of the Plan, and entry into the APA is in the best interest of the Debtors, their estates and their creditors. The Debtors have exercised reasonable business judgment in pursuing and consummating the APA….The Third- Party Transaction contemplated by the APA shall not include a sale or transfer to the Buyer of any of the Settled Claims or other Claims or Causes of Action against any of the NRG Parties or their affiliated Released Parties to be released or settled by the Debtors under the Plan and shall not impair the rights, releases, and settlements agreed to by and between the Debtors and the NRG Parties that will be settled in accordance with the NRG Settlement and NRG Settlement Agreement, the Plan, or the Confirmation Order, as applicable, upon emergence.”
As previously reported, the Court confirmed the Plan on December 12, 2017; however, the Plan is not yet effective.
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