Former Footprint disclosure statement OK’d; plan hearing Aug. 16

By Sarah Lizee

Olympia, Wash., June 30 – Salem Harbor Power Development LP, formerly Footprint Power Salem Harbor Development LP, received approval of the disclosure statement for its Chapter 11 plan, according to an order filed Thursday with the U.S. Bankruptcy Court for the District of Delaware.

The plan confirmation hearing is scheduled for Aug. 16.

As previously reported, the company recently decided to pursue a stand-alone restructuring over a sale transaction. The company had originally filed Chapter 11 to implement a dual-track plan providing for either a restructuring or sale.

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 stand-alone restructuring will maximize value for the debtors’ estates.

Plan terms

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

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.

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

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