AES Eastern Energy second amended liquidation plan confirmed by court

By Caroline Salls

Pittsburgh, Dec. 27 - AES Eastern Energy, LP's second amended plan of liquidation was confirmed Thursday by the U.S. Bankruptcy Court for the District of Delaware.

The plan calls for the establishment of a liquidating trust that will resolve all claims, distribute the debtors' cash and liquidate all remaining property.

As previously reported, the settlement of a fraudulent transfer claim against AES Eastern's parent company includes a $47 million recovery for unsecured creditors.

Treatment of creditors under the plan will include the following:

• Payment in full in cash to holders of allowed administrative claims, secured claims and other priority claims;

• Holders of general unsecured claims will receive liquidating trust beneficial interests; and

• Holders of equity interests will receive no distribution.

AES Eastern Energy operates more than 1,000 megawatts of capacity at four facilities in New York. The company filed for bankruptcy on Jan. 3, 2011 under Chapter 11 case number 11-14138.

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