MACH Gen's Chapter 11 plan confirmed, disclosure statement approved

By Kali Hays

New York, April 11 - MACH Gen, LLC obtained confirmation of its proposed Chapter 11 plan and approval of the related disclosure statement, according to a Friday order with the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, upon filing the company said the plan will significantly reduce its long-term debt by about $1 billion, improve its overall financial condition and creditworthiness and ensure its continued operations as a going concern.

The company also said that it entered into a restructuring support agreement Jan. 15 with all of its first-lien lenders, more than 75% of its second-lien lenders and more than 85% of the holders of its equity interests.

Plan terms

Under the plan

• All of the second-lien lenders' claims will be exchanged for 93.5% of the equity interests in reorganized MACH Gen;

• First-lien revolver claims out of a total loan commitment of $200 million will be exchanged for obligations under, or paid with the proceeds of, a new first-lien revolver;

• First-lien term loan claims will be exchanged for obligations under, or paid with the proceeds of, a new first-lien term loan;

• Existing MACH Gen interests will be exchanged for 6.5% of the new common units; and

• All other claims, including all general unsecured claims, will be paid in full or otherwise rendered unimpaired.

In order to fund the distributions, the company said reorganized MACH Gen will enter into new first-lien facilities with Beal Bank USA, including a $483 million term loan and a $200 million revolver.

In addition, MACH Gen or a newly formed holding company will issue 10 million common units representing 100% of the membership interests.

MACH Gen is a Silver Spring, Md.-based portfolio of power-generation assets. The Chapter 11 case number is 14-10461.

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