Because Edison Mission Energy and NRG Energy (NYSE: NRG) hope to close on April 1 on a sale of Edison Mission Energy to NRG, they urged the Federal Energy Regulatory Commission to act on a related approval by March 27.
“Issuance of an order by that date would facilitate timely consummation of the plan of reorganization (the ‘Plan’) for EME and its affiliated debtors (collectively, the ‘Debtors’) under Chapter 11 of the United States Bankruptcy Code,” they said in a Feb. 27 filing at FERC.
The filing was backed by other parties to the case, including the Official Committee of Unsecured Creditors of EME, the Senior Noteholder Committee, Nesbitt Asset Recovery Series J-1, Joliet Trust II, Powerton Trust II, Nesbitt Asset Recovery Series P-1, Powerton Generation II LLC, Joliet Generation II LLC and the Bank of New York Mellon.
“As major stakeholders and representatives of major stakeholders in the bankruptcy proceedings, Movants strongly support the Plan as a means of resolving numerous complex issues, maximizing value for stakeholders, and effectuating prompt distributions to the Debtors’ creditors,” they added. “The Bankruptcy Court is currently expected to hold a hearing on confirmation of the Plan on March 11, 2014. Provided Commission approval has been obtained and the Bankruptcy Court rules favorably on the Plan, Applicants currently expect to consummate the Transaction on April 1, 2014.”
The sale of EME and its power plants to NRG is the major feature of the reorganization plan. EME and affiliates, including coal-fired power plant operator Midwest Generation, have been in Chapter 11 protection since December 2012 at the U.S. Bankruptcy Court for the Northern District of Illinois.
When NRG Energy and Edison Mission Energy applied at FERC for this approval in October 2013, they had asked for that approval by Jan. 31.