The bankruptcy judge for Longview Power LLC and related companies, including coal producer Mepco LLC, on March 16 confirmed their latest reorganization plan, clearing the way for their emergence from Chapter 11 protection.
The order was out of the U.S. Bankruptcy Court for the District of Delaware. Longview controls a 700-MW (net) coal-fired power plant in northern West Virginia. It sought Chapter 11 protection in August 2013, citing low-priced power markets and continuing technical problems that inhibited the operation of the power plant.
The reorganization is based on a debt-for-equity swap that has been approved by the Federal Energy Regulatory Commission. Mepco controls coal mining operations in Northern Appalachia, located near the power plant, that provide the Longview plant with coal and also ships coal for outside sales. The emergence from Chapter 11 is keyed on settlements that Longview worked out with three contractors that built the power plant late last decade.
Judge Brendan Shannon on March 16 also approved new “exit” financing for the Longview companies that will support them once they emerge from bankruptcy protection.