Longview Power to resume plan solicitation; exclusive periods extended

By Kali Hays

New York, May 29 - Longview Power, LLC obtained court approval to continue soliciting votes on its amended plan of reorganization, according to a Thursday order with the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, 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 Energy, Inc. and Kvaerner North American Construction Inc. without the necessity of claims estimation by the court.

Kvaerner and Siemens have both objected to confirmation of the amended plan.

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 had proposed a Sept. 2 plan confirmation hearing, but no date has been set. Longview said it hopes to emerge from bankruptcy in the third quarter.

The court also authorized an extension of Longview's exclusive plan of reorganization filing and acceptance periods, according to a separate order.

The exclusive filing period is extended through June 4 from March 14 and the solicitation period through Aug. 5 from May 14.

As previously reported, the debtors sought the extension to "complete their financial and operational restructuring initiatives, to drive their plan process forward and to bring these Chapter 11 cases to a successful conclusion," according to a motion.

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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