Homer City Funding's plan of reorganization effective Dec. 14

By Lisa Kerner

Charlotte, N.C., Dec. 14 - Homer City Funding LLC's plan of reorganization became effective Dec. 14, according to a Friday filing with the U.S. Bankruptcy Court for the District of Delaware.

The company's disclosure statement was approved and its pre-packaged Chapter 11 bankruptcy plan was confirmed during a Dec. 6 hearing.

As previously reported, no objections were filed regarding the disclosure statement or the plan, and the plan received unanimous support from voting creditors.

Creditor treatment

Treatment of creditors under the plan includes

• Holders of priority non-tax claims will be paid in full in cash;

• Holders of existing bond claims will receive a share of new secured bonds, with a principal amount equal to $174 million for the 8.137% senior secured bonds due 2019 and $465.98 million for the 8.734% senior secured bonds due 2026, plus interest due on the bonds for the period of April 1, 2012 through Sept. 30;

• Holders of other claims will be unimpaired. The company said it does not believe there will be any other claims; and

• Holders of equity interests will receive no distribution.

HCF Charitable Remainder Trust holds 100% of Homer City's equity.

The Homer City, Pa.-based company owns three coal-fired electric generating units, which it collectively refers to as the Homer City plant. The Chapter 11 case number is 12-13024.

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