FirstEnergy power plant subsidiaries end up in bankruptcy court.
Nuclear and coal-fired power plant operator FirstEnergy Solutions (FES), subsidiaries of FirstEnergy Corp., filed for chapter 11 to enable a restructuring. The listed debtors include FEC subsidiaries and FirstEnergy Nuclear Operating Co.
The company cited liquidity concerns as well as the expansion of natural gas supply, which caused electricity prices to plunge, coupled with the increasing cost of complying with environmental regulations. FES will use cash on hand, roughly $550 million, to fund the case.
As of the filing, FES had about $1.5 billion of funded debt, comprising a $700 million revolving credit facility, $695 million of unsecured notes and a $102 million outstanding from a credit facility with a non-debtor entity. Debtors FirstEnergy Nuclear Generation and FirstEnergy Generation have roughly $2.1 billion of additional funded debt.
FES has not filed a plan or any specific trajectory for the case as of yet.
Read President and Chairman Donald R. Schneider’s declaration in support of the first day motions here.
View the chapter 11 petition.
Yet another radio station company, Matrix Broadcasting, faces chapter 11.
Matrix Broadcasting filed chapter 11 to be afforded protections while it focuses on a dispute with Digity Companies and Alpha Media in connection with the lack of closure on previously discussed deals that would have put Matrix in a better financial position. Additionally, with the maturity of the term loan, Matrix was left with no option but to file for chapter 11.
At the time of the filing, the company listed $4.02 million outstanding under the term loan, which can be reduced to $2.568 million if the letter of credit is drawn. During the case the company aims to work with creditors as well as Digity and Alpha.
Read CEO Peter Handy’s declaration in support of the first day motions.
View the chapter 11 petition.
EV Energy Partners seeks prepackaged chapter 11 restructuring.
Oil and gas master limited partnership EV Energy Partners is looking at a quick trip through chapter 11 with a renegotiated plan. The plan is outlined in the restructuring support agreement (RSA) and is supported by holders of about 70% of the company’s senior notes and 94% of the amount outstanding on the reserve-based lending facility.
The RSA will, if approved, eliminate almost $350 million of the company’s senior notes in exchange for giving those noteholders 95% of the reorganized company. Existing equity holders are slated to receive 5% for the reorganized equity. The current lending facility will be amended and reinstated.
EV Energy Partners listed $50 million to $100 million in assets and $500 million to $1 billion in liabilities in the filing.
Read CEO Nicholas P. Bobrowski’s declaration in support of the first day motions here.
View the chapter 11 petition.
