GenOn Energy requests six-month extension of exclusive plan periods

By Caroline Salls

Pittsburgh, Sept. 12 – GenOn Energy, Inc. is seeking an extension of its exclusive periods for filing and soliciting votes on a Chapter 11 plan, according to a motion filed Monday with the U.S. Bankruptcy Court for the Southern District of Texas.

The company asked the court to extend its exclusive plan-filing period through April 12, 2018 and the solicitation period through June 11, 2018.

As previously reported, GenOn filed bankruptcy to implement a restructuring support agreement that calls for a consensual separation from current ultimate parent, NRG Energy, Inc.

However, the company also recently launched a dual-track process to explore potential asset sales. GenOn said this simultaneous execution on the existing plan structure and a parallel marketing process requires significant effort and coordination among the debtors and their stakeholders.

In addition, GenOn said its plan confirmation hearing is currently set for Nov. 13, which is about one month after its exclusive plan-filing period is scheduled to expire.

“The debtors believe that maintaining the exclusive right to file and solicit votes on a plan of reorganization is critical to the debtors’ efforts to conduct a potentially value maximizing marketing process while also pursuing the standalone restructuring,” the motion said.

“Extending the exclusivity periods will afford the debtors and their stakeholders time to confirm the plan, finalize the restructuring transactions contemplated by the plan and proceed toward emergence in an efficient, organized fashion.”

A hearing is scheduled for Oct. 3.

GenOn, a Princeton, N.J.-based power producer, filed for bankruptcy on June 14. The Chapter 11 case number is 17-33695.

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