Former Footprint opts to go for standalone restructuring over sale

By Sarah Lizee

Olympia, Wash., June 24 – Salem Harbor Power Development LP, formerly Footprint Power Salem Harbor Development LP, has decided to pursue a standalone restructuring over a sale transaction, according to a notice filed Friday with the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, the company filed Chapter 11 to implement a dual-track plan providing for either a restructuring or sale.

Under the plan, holders of administrative claims and priority tax claims will be paid in full.

Under a bid procedures order, the company had until 5 p.m. ET on June 3 to file a stalking horse motion, bids were due by 5 p.m. ET on June 10, and an auction was set to take place on June 14. The company later canceled the auction.

The company said it has evaluated the bids received under the sale process and has determined that a standalone restructuring will maximize value for the debtors’ estates.

Plan terms

Under the plan, holders of other secured claims will receive payment in full in cash, the collateral securing their claims, or reinstatement of their claims.

Holders of other priority claims will receive payment in full in cash.

If a stand-alone restructuring takes place, holders of credit facility claims will receive a pro rata share of 100% of the new common equity and exit facility loans, if applicable. If a sale takes place, holders will receive their pro rata share of the net sale proceeds until all claims are satisfied in full in cash.

If a stand-alone restructuring takes place, holders of general unsecured claims will receive their pro rata share of proceeds from the disposition of unencumbered assets. If a sale takes place, holders will receive their pro rata share of proceeds from the disposition of unencumbered assets and, only to the extent credit facility claims are paid in full, the net sale proceeds remaining until all general unsecured claims are paid in full in cash.

Intercompany claims will be reinstated or canceled with no distribution.

Holders of section 510(b) claims will receive no recovery.

Interests will be canceled with no distribution.

A hearing on the disclosure statement is scheduled for June 24.

The Salem, Mass.-based power plant operator filed bankruptcy on March 23 under Chapter 11 case number 22-10239.

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