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 / Bonds

FirstEnergy Solutions Chapter 11 Petition Filed

FirstEnergy Solutions and six affiliated Debtors filed for Chapter 11 protection with the U.S. Bankruptcy Court in the Northern District of Ohio, lead case number 18-50757. The Company, which energy-related products and services, is represented by Marc B. Merklin of Brouce McDowell. FirstEnergy Solutions is a wholly-owned subsidiary of FirstEnergy, which did not file for U.S. Bankruptcy Court protection. The Company announced that the filing was initiated in order to facilitate an orderly financial restructuring. The filing entities collectively have over $550 million in cash, which they believe is sufficient liquidity to continue normal operations and meet post-petition obligations to employees, suppliers and customers as they come due. Donald R. Schneider, president of FirstEnergy Solutions, says, "Given the prospective timing of federal and state review and our ongoing cash needs and debt service obligations, the FES and FENOC Boards of Directors determined that the Chapter 11 filing represents our best path forward as we continue to pursue opportunities for restructuring, asset sales and legislative and regulatory relief. We believe that this decision will best serve our customers, employees and business partners." On March 29, 2018, the Company filed an application with U.S. Secretary of Energy Rick Perry seeking an emergency order directing PJM Interconnection to secure the long-term capacity of certain nuclear and coal-fired plants in the region--including FirstEnergy Solutions' plants--to compensate their owners "for the full benefits they provide to energy markets and the public at large, including fuel security and diversity." This relief is being sought under Section 202(c) of the Federal Power Act, which gives the Secretary extraordinary powers to address such emergencies.

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