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Homer City Generation Prepackaged Bankruptcy

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Homer City Generation (a/k/a Homer City Funding) filed for Chapter 11 protection with the U.S. Bankruptcy Court in the District of Delaware, case number 17-10086. The Company, which owns and operates a coal-fired merchant power plant, is represented by Mark D. Collins of Richards, Layton & Finger.

The Company announced that the filing was initiated in order to implement a comprehensive restructuring plan that will significantly reduce debt and provide for an orderly transition of ownership. Concurrent with its Chapter 11 petition, the Company also filed a Prepackaged Chapter 11 Plan of Reorganization and related Disclosure Statement. The Plan provides that trade and other general unsecured creditors will be paid in full for their claims.

Homer City Generation entered into a pre-petition restructuring support agreement with approximately 86% of the holders of its outstanding 8.137% Senior Secured Notes due 2019 and 8.734% Senior Secured Notes due 2026 which, among other things, provides for the noteholders to become majority equity owners in Homer City Generation and for more than $600 million in principal and accrued interest to be eliminated from the Company’s balance sheet.

“Today, with the strong support of the noteholders, we are taking the next step to implement Homer City’s financial restructuring plan,” comments John Boken, a senior managing director at Zolfo Cooper, who will serve as the Company’s C.R.O. “Through this process, we expect to enhance the Company’s financial flexibility, eliminate over $600 million in existing secured debt from the Company’s balance sheet and enable Homer City to continue to invest in its operations and environmental compliance.”

Homer City Funding emerged from a previous Chapter 11 filing in December 2012.

Read more Homer City bankruptcy news.

The post Homer City Generation Prepackaged Bankruptcy appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.


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