Longview Power wins confirmation of pre-packaged reorganization plan

By Caroline Salls

Pittsburgh, May 22 – Longview Power LLC’s pre-packaged reorganization plan was confirmed Friday by the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, Longview said unprecedented low energy prices prompted it to file bankruptcy to facilitate the efficient transition of ownership to its senior secured lenders through a restructuring and deleveraging of its balance sheet to eliminate its now unsustainable debt burden.

The company said it will enter into a $40 million new-money exit facility. Under Longview’s pre-packaged plan of reorganization, some of the company’s pre-bankruptcy term loan lenders have committed to provide this facility in exchange for 90% of the common equity of the reorganized company.

Other pre-bankruptcy term lenders will receive 10% of the reorganized equity.

Pre-bankruptcy subordinated notes and equity will be cancelled in exchange for a release.

All vendors will be paid in the ordinary course of business.

General unsecured claims will remain unimpaired and “ride through” the Chapter 11 cases.

Longview said the plan will equitize all of its pre-bankruptcy funded debt, eliminating about $350 million of first-lien and subordinated debt.

Longview is an integrated power generation enterprise based in Maidsville, W.Va. The company filed bankruptcy on April 14 under Chapter 11 case number 20-10951.

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