GenOn subsidiary NRG REMA’s pre-packaged Chapter 11 plan confirmed

By Caroline Salls

Pittsburgh, Nov. 2 – GenOn Energy, Inc. indirect subsidiary NRG REMA LLC and NRG REMA’s direct subsidiaries obtained confirmation of their pre-packaged plan of reorganization, according to an order filed Friday with the U.S. Bankruptcy Court for the Southern District of Texas.

GenOn said the plan is supported by NRG REMA, GenOn’s independent directors, the independent directors of NRG REMA, more than 90% of holders of some series C pass-through trust certificates due 2026, Public Service Enterprise Group and the steering committee of GenOn’s noteholders.

The company said in the disclosure statement filed with the court that the REMA debtors will fund plan distributions using cash on hand, exit financing proceeds, interests in the rejected Conemaugh facility lease and the Keystone facility lease, interests in the reorganized REMA debtors and the cash proceeds from GenOn’s backstop of the REMA debtors’ plan funding obligations.

Under the plan, “other” secured claims will be reinstated or holders will be paid in full in cash or receive the collateral securing the claim.

Priority claims will be paid in full in cash.

At the discretion of the NRG REMA debtors, GenOn claims will be either extinguished, reinstated on a subordinated basis or converted into equity.

PSEG will receive a share of a cash distribution, and Shawville Pipeline conditions will be satisfied.

Holders of Key/Con rejection damages claims will receive a share of a cash distribution, will relinquish possession of their leasehold interests in the Keystone Plant and Conemaugh Plant, and ownership of the Keystone indenture estate and Conemaugh indenture estate will be transferred to the Key/Con owner.

General unsecured claims will be paid in full.

NRG REMA interests will either be deemed cancelled or reinstated.

GenOn, a Princeton, N.J.-based power producer, filed for bankruptcy on June 14, 2017. The Chapter 11 case number is 17-33695. NRG REMA is involved in the ownership and operation of, and contracting for power generation capacity in the United States.

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