Bankruptcy News

We've summarized the latest docket activity and news for publicly traded companies currently operating under U.S. Bankruptcy Court protection.

Bankruptcy/Chapter 11 / Energy

Entegra Power Group Chapter 11 Petition, Plan Filed

Privately-held Entegra Power Group and 11 affiliated Debtors filed for Chapter 11 protection with the U.S. Bankruptcy Court in the District of Delaware, lead case number 14-11859. The Company, which owns and operates natural gas-fueled power plants and markets electric power from these plants, is represented by Jason M. Madron of Richards, Layton & Finger. Concurrent with the petition, the Company also filed with the Court a Joint Prepackaged Chapter 11 Plan of Reorganization and related Disclosure Statement (dated July 3, 2014). The Disclosure Statement explains, "The purpose of the financial restructuring, as described above, has been to reduce the Debtors' leverage and enhance their competitive marketplace position. Specifically, the financial restructuring has been designed to reduce the amount of the Debtors' total outstanding debt obligations from approximately $1.5 billion as of May 31, 2014, to approximately $788 million as of the consummation of the financial restructuring….Reorganized ETC's initial board of directors will consist of five directors, as follows: one will be the CEO of Reorganized ETC, one will be designated by Luminus Management, LLC; and three will be selected by the Participating Prepetition Third Lien Lenders, of whom one or more may be existing members of the board of directors of Parent prior to the Effective Date. In January 2005, TECO (and all of its direct and indirect subsidiaries) filed for Chapter 11 protection. TECO subsequently transferred ownership of UPP, Trans-Union, UPP Finance and Panda Gila River (collectively, the 2005 Debtors) to EPG LLC, a Debtor in the current proceedings that is wholly-owned by the 2005 pre-petition lenders. Entegra Power Group's current Chapter 11 petition indicates total assets greater than $500 million.

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