Longview Power LLC, which has had its reorganization plan approved and is getting ready to emerge from Chapter 11 bankruptcy protection, on March 25 filed with the court its latest lists of contracts/leases to be assume, and those to be rejected.
Longview controls a 700-MW (net) coal-fired power plant in northern West Virginia. It also has related companies in bankruptcy with it, including coal producer Mepco LLC.
Said the March 25 assumption filing: “The Debtors intend to assume the Executory Contracts or Unexpired Leases listed on Exhibit A to which you are a counterparty. The Debtors have conducted a review of the Debtors’ books and records and have determined that the amount to cure unpaid obligations under such contract or lease is as set forth on Exhibit A (the ‘0Cure Obligation’). Unless otherwise ordered by the Court, any objection by a counterparty to an Executory Contract or Unexpired Lease to a proposed assumption or related Cure Obligation must be filed with the Court and served so as to be actually received by the Debtors on April 24, 2015, at 4:00 p.m. prevailing Eastern Time, the date that is 30 days from the date of service of this Notice.”
The list of deals to be assumed includes an “option” agreement that Mepco has with Consolidation Coal, a lease agreement that Mepco has with Reserve Coal Properties and a boiler island agreement that Longview has with Foster Wheeler North America.
The reject list includes a promissory note that Mepco has with Double H Mining, an electricity pricing deal that Mepco has with FirstEnergy Solutions, and master ISDA agreements that Longview has with Morgan Stanley Capital Group, Natixis and Shell Energy North America (US) LP.
The bankruptcy judge for Longview Power and related companies had 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 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.