Optim Energy creditor Walnut Creek appeals plan order, requests stay

By Caroline Salls

Pittsburgh, July 30 – Optim Energy, LLC creditor Walnut Creek Mining Co. appealed the July 24 order confirming Optim’s third amended joint plan of reorganization and asked the U.S. Bankruptcy Court for the District of Delaware to stay confirmation pending resolution of the appeal, according to Wednesday court filings.

Walnut Creek appealed the confirmation order to the U.S. District Court for the District of Delaware.

According to the stay motion, Walnut Creek raised issues at the two-day plan confirmation hearing that “not only affect Walnut Creek’s rights, they implicate important questions affecting further cases to come and bankruptcy law and policy generally.”

“As the testimony and evidence at the hearing made clear, recoveries in the third amended plan were reduced solely for the purpose of creating an impaired class of creditors,” Walnut Creek said in the stay motion.

Walnut Creek said Optim amended the plan in an effort to isolate Walnut Creek and did so “without good faith.”

Walnut Creek said the Optim debtors were “dead set on preventing” its plan confirmation appeal and are looking to consummate the plan as soon as possible to deny the creditor an opportunity to seek a stay and maximize the likelihood of its appeal being moot.

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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