FES Announces Restructuring Support Agreement with Key Stakeholders
January 24, 2019
FirstEnergy Solutions (FES) announced that it reached an agreement with creditors on the terms of a Restructuring Support Agreement (RSA) that would allow FES to emerge from Chapter 11 bankruptcy protection this year with continued ownership and operation of its retail and wholesale load-serving business.
The RSA will help FES to emerge from bankruptcy as a fully-integrated independent power producer with retail sales and with its nuclear and fossil generating assets intact. FES will continue operating its nuclear and fossil generation until their previously announced deactivation dates. However, the generating business could operate for an extended period if there is sufficient legislative support and meaningful market reform.
FES continues to have constructive dialogue at the state and federal levels to gain necessary financial support for its baseload generation assets, which are a critical source of reliable and clean power in Ohio and Pennsylvania.
The RSA will form the basis of a Plan of Reorganization which will ultimately be filed with the U.S. Bankruptcy Court for the Northern District of Ohio. The agreement was reached between FES and the official committee of unsecured creditors, two creditor groups representing a majority in aggregate amount of the Debtors’ funded indebtedness and sale-leaseback certificates, and a group of creditors holding claims against FES and the FirstEnergy Nuclear Operating Company.
The agreement sets a series of milestones which could allow FES to emerge from Chapter 11 by the end of 2019.
Read more about the agreement and its details in the FES news release.