GenOn Energy – Court Grants Motion to Modify Plan to Account for Sale of Choctaw Facility to Entergy

September 18, 2018 – The Court hearing the GenOn Energy case approved the Debtors’ Third Amended Joint Chapter 11 Plan of Reorganization [Docket No. 1847] to explicitly approve changes to the Plan which relate to the sale of Debtors’ Choctaw generating facility to Entergy. As previously reported [Docket No. 1817], “Out of an abundance of caution, the Debtors seek to modify the Third Amended Joint Plan of Reorganization…to incorporate a Third-Party Sale Transaction, on the terms set forth in that certain asset purchase agreement, entered into by Debtors NRG Wholesale Generation LP and GenOn Energy (collectively, ‘Sellers’), and Entergy Mississippi (‘Entergy or ‘Buyer’)….The APA provides for the sale of the 800 MW Choctaw Generating Facility in French Camp, Mississippi (“Choctaw”) for a base purchase price of approximately $314 million. The Debtors have obtained the support and agreement of all necessary parties with rights as to Third-Party Sale Transactions, entry into which has already been approved pursuant to the confirmed Plan. Accordingly, the Debtors believe that they are already authorized to enter into and consummate the APA under the Plan.  Notwithstanding the foregoing, as an accommodation to the Buyer and in an abundance of caution, the Debtors seek to modify the Plan, and submit that such modification of the Plan by incorporating the APA is necessary to implement the Plan.”