Longview Power amends plan structure, eyes third-quarter emergence

By Caroline Salls

Pittsburgh, May 12 - Longview Power, LLC requested court approval to continue solicitation of votes on an amended plan of reorganization, according to a Saturday filing with the U.S. Bankruptcy Court for the District of Delaware.

The company said the amended plan was negotiated with backstoppers and other parties in interest and incorporates a modified structure that will facilitate the resolution of pending mechanics' lien claims asserted by Siemens and Kvaerner without the necessity of claims estimation by the court.

Specifically, under the amended plan:

• By agreement with the backstoppers, the Longview credit agreement collateral agent will contribute proceeds from the $825 million available under an insurance policy obtained for the Longview lenders' benefit to an insurance trust;

• If Siemens and Kvaerner are ultimately determined to have allowed claims senior to liens securing the Longview credit agreement claims, such claims will be satisfied in full with cash distributions from the insurance trust;

• The debtors' claims estimation process will be held in abeyance during the pendency of the continued solicitation and confirmation process; and

• Under the amended plan, the debtors will file an action to confirm the availability of coverage under the insurance policy in the near term.

The company is proposing a Sept. 2 plan confirmation hearing. Longview said it hopes to emerge from bankruptcy in the third quarter.

A hearing is scheduled for May 29.

Longview, an integrated power generation enterprise based in Maidsville, W.Va., filed for bankruptcy on Aug. 30, 2013. The Chapter 11 case number is 13-12211.

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