ExGen Texas Power plan of reorganization takes effect as of April 17

By Caroline Salls

Pittsburgh, April 23 – ExGen Texas Power, LLC’s plan of reorganization took effect on April 17, according to a notice filed Friday with the U.S. Bankruptcy Court for the District of Delaware.

The plan was confirmed on March 29.

As previously reported, ExGen Texas filed bankruptcy to implement an asset purchase agreement under which Exelon Generating Co., LLC will acquire ExGen Texas’ Handley Generating Station for $60 million.

As part of a compromise among the company’s secured lenders, Exelon Generating and ExGen Texas, Exelon Generating agreed to provide substantial cash and non-cash consideration to fund distributions under the proposed plan, in addition to the purchase price for the Handley facility.

Under the plan, holders of pre-bankruptcy revolving credit facility claims will receive cash equal to the claim amount.

If secured sponsor claims are not settled under a proposed compromise, they will be treated as pre-bankruptcy credit agreement claims.

Holders of secured pre-bankruptcy credit agreement claims will receive a share of a new equity interests pool.

Holders of general unsecured claims will receive a share of a general unsecured claims cash amount.

Subject to the restructuring transactions, intercompany claims will be reinstated, compromised or cancelled.

Old parent interests will be cancelled, and holders will receive no distribution.

Old intercompany interests will remain outstanding.

ExGen is the owner of a portfolio of combined-cycle and natural gas-fired peaking and steam turbine generators in Texas. The company is owned by Exelon Generation Co. ExGen filed for bankruptcy on Nov. 7 under Chapter 11 case number 17-12377.

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