GenOn gets court approval to distribute funds to unsecured creditors

By Caroline Salls

Pittsburgh, July 13 – GenOn Energy, Inc. received approval from the U.S. Bankruptcy Court for the Southern District of Texas to make interim Chapter 11 plan distributions to some holders of unsecured claims, according to an order filed Friday.

As of April 30, GenOn reported $293.6 million of cash on hand. After receiving expected sale proceeds and making the final payment on account of GenOn Americas Generation notes claims, the company said it projects more than $800 million of available cash, “substantially in excess of what the debtors believe is necessary or prudent to operate their businesses.”

GenOn said the debtors expect to distribute and/or reserve several hundred million dollars in connection with the interim distribution order.

“The debtors anticipate making near-term distributions of approximately $30 million on account of approximately 1,100 allowed general unsecured claims, in full and final satisfaction of such claims,” the motion said.

The company said the balance of the interim distributions would be paid to holders of GenOn notes claims.

In addition, GenOn said the debtors expect to make further future distributions of excess cash.

GenOn, a Princeton, N.J.-based power producer, filed for bankruptcy on June 14, 2017. The Chapter 11 case number is 17-33695.

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