Homer City Generation amended pre-packaged plan takes effect April 6

By Caroline Salls

Pittsburgh, April 6 – Homer City Generation LP’s first amended pre-packaged plan of reorganization took effect on April 6, according to a notice filed with the U.S. Bankruptcy Court for the District of Delaware.

The plan was confirmed on Feb. 15.

As previously reported, the company said the restructuring is expected to significantly deleverage its balance sheet and provide for an orderly transition of ownership to Homer City’s existing secured noteholders.

Under the plan, all trade creditors and other general unsecured creditors will be paid in full.

Noteholders other than GE Financial Services Energy will receive a share of 100% of limited liability company interests in a new holding company, as well as a percentage of new company interests that GE has agreed to contribute.

On account of its notes claims, GE will receive its share of the new company interests other than those it agreed to contribute.

All existing partnership interests in Homer City will be cancelled on the plan effective date.

GE’s obligations under any guaranty, indemnification or credit support currently provided to or for the benefit of Homer City will be released and replaced.

Indiana, Pa.-based Homer City operates three coal-fired electric generating units. The company filed for bankruptcy on Jan. 11 under Chapter 11 case number 17-10086.

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