The bankruptcy court for Longview Power LLC on Feb. 18 approved a second amended disclosure statement related to the company’s reorganization plan, clearing the way for the company to solicit creditor acceptances of that plan.
Longview Power, which owns a 700-MW (net) coal plant in West Virginia, and various affiliates, including coal producer Mepco LLC, are in Chapter 11 protection at the U.S. Bankruptcy Court for the District of Delaware. Longview lately has cleared up the last of its disputes with the contractors that helped build the power plant late last decade, which means a reorganization approval may go smoothly and quickly from here.
The court in the Feb. 18 order set a March 9 deadline for creditor votes on the plan and a March 16 hearing to consider confirmation of the amended plan. Part of the Feb. 18 order was an approval of the form of the ballot being sent to creditors.
Basically, the plan calls for a debt-to-equity swap, leaving a group of financial entities called in court filings as the “backstoppers” as owners of the companies. The power plant would continue to operate, and even get some needed repairs that will help it run properly, something it hasn’t been consistently able to do up to now.