Heritage Power starts Chapter 11 proceedings with GenOn restructuring agreement

Chicago, Jan. 24 – Heritage Power LLC started voluntary Chapter 11 cases on Tuesday, according to a press release.

The owner of natural gas and oil-fueled power generation facilities said it has ample cash on its balance sheet and will not need additional financing at this time.

In the filing, Heritage lists $50 million to $100 million in assets and $500 million to $1 billion in liabilities with 200 to 999 creditors.

The eight largest creditors are each owed an undetermined amount, but are all trade claims.

The top five creditors listed are: Columbia Gas of Pennsylvania, Eastern Gas Transmission and Storage, Elizabethtown Gas Co., National Fuel Gas Distribution and Peoples Natural Gas Co. LLC.

Heritage announced that it also entered into a restructuring support agreement with parent company GenOn Holdings and consenting lenders.

The proposed financing restructuring in the agreement would significantly reduce Heritage’s debt.

The plan will deleverage Heritage’s capital structure by equitizing secured claims against Heritage, reject “burdensome contracts,” and retain current plant employees serving the Heritage fleet.

Haynes and Boone, LLP is acting as legal adviser, and Alvarez & Marsal is acting as restructuring adviser to Heritage.

Heritage Power is based in Houston. The company filed Chapter 11 in the U.S. Bankruptcy Court for the Southern District of Texas. The case number is 23-90032.

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