Westinghouse disclosure statement OK’d; plan hearing set for March 27

By Caroline Salls

Pittsburgh, Feb. 22 – Westinghouse Electric Co. LLC received court approval of the disclosure statement for its amended plan of reorganization, according to an order filed Thursday with the U.S. Bankruptcy Court for the Southern District of New York.

The plan confirmation hearing is scheduled for March 27.

As previously reported, Westinghouse has agreed to be acquired by Brookfield Business Partners LP and its institutional partners for $4.6 billion.

The company said the plan provides for a global settlement of all disputes among the Westinghouse debtors, the direct and indirect non-debtor subsidiaries of affiliates TSB Nuclear Energy Services Inc. and TNEH UK and their key creditor constituencies.

As part of the proposed Brookfield transaction, investor Brookfield WEC Holdings LLC will provide $3.8 billion in cash and cash consideration to fund the plan process in exchange for the acquisition of 100% of the equity interests in Westinghouse Electric Holdings UK Ltd. held by TNEH UK and the equity interests in the reorganized U.S. holding company.

The plan investment transaction also provides for the assumption of $770 million of liabilities.

Westinghouse said a five-member plan oversight board will be established to oversee and direct the implementation and administration of the plan for benefit of claimants.

On the plan effective date, a winddown company will deposit cash or cash equivalents equal to $1.15 billion into a segregated account to be used for distributions to holders of general unsecured claims.

Based on the plan investment proceeds, the company’s analysis of claims and settlements included in the plan, Westinghouse said it believes that holders of class 3A general unsecured claims will receive distributions “at or just below 100%” of their claims.

Meanwhile, holders of class 3B general unsecured claims will receive a share of 100% of the membership interests in the winddown company.

Holders of U.S. holding company and TNEH UK interests will receive no distribution.

Intercompany interests will be reinstated.

Priority claims will be paid in full in cash.

Holders of secured claims will either be paid in full in cash, receive the collateral securing the claim or have the claim reinstated.

Westinghouse, a Cranberry Township, Pa.-based nuclear products and services company and a subsidiary of Toshiba, filed bankruptcy on March 29, 2017. The Chapter 11 case number is 17-10751.

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