Optim Energy third amended plan eliminates gas plant portfolio sale

By Caroline Salls

Pittsburgh, May 7 – Optim Energy, LLC filed a third amended plan of reorganization and related disclosure statement Wednesday with the U.S. Bankruptcy Court for the District of Delaware that eliminates previous plans for a potential sale of the company’s gas plant portfolio.

The plan confirmation hearing is scheduled for June 24.

After an extensive marketing campaign, Optim said it did not receive any bids for the portfolio on satisfactory terms.

Under the third amended plan, pre-bankruptcy secured parties will receive a second-lien note, ownership of the gas plant portfolio through issuance of new company equity interests, residual cash and undeliverable distributions in exchange for their claims.

The company said the pre-bankruptcy secured parties will receive “substantially less than a full recovery” on their claims, but they have consented to the reorganizing debtors’ estates funding to holders of allowed claims.

Holders of general unsecured claims will receive distributions as long as each class of those claims votes in favor of the applicable subplan. Unsecured creditors will receive additional consideration if they vote to accept the plan and do not opt out of releases included in the plan.

Debtor-in-possession claims will be paid in full in cash.

Existing equity interests will be cancelled and extinguished under the plan, and the new company will receive 100% of reorganized Optim’s equity.

Optim, a Silver Spring, Md.-based power plant owner, filed for bankruptcy on Feb. 12, 2014. The Chapter 11 case number is 14-10262.

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