Former Footprint Power receives confirmation of Chapter 11 plan

By Sarah Lizee

Olympia, Wash., Aug. 17 – Salem Harbor Power Development LP, formerly Footprint Power Salem Harbor Development LP, received confirmation of its Chapter 11 plan, according to documents filed with the U.S. Bankruptcy Court for the District of Delaware.

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 had evaluated the bids received under the sale process and has determined that a stand-alone restructuring will maximize value for the debtors’ estates.

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.

Holders of credit facility claims will receive a pro rata share of 100% of the new common equity and a new $60 million first-lien term loan facility.

The holder of the Iberdrola Energy Projects, Inc. (IEP) judicial lien claim will receive its pro rata share of the $175,000 cash pool distribution amount, if the claim is found to be valid.

Each holder of a general unsecured claim will receive their pro rata share of the $175,000 cash pool distribution amount. However, to the extent the IEP judicial lien is found to be valid, this class will not receive a distribution.

Intercompany claims and interests 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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