Panda Temple Power files plan; disclosure statement hearing June 27

By Caroline Salls

Pittsburgh, May 24 – Panda Temple Power, LLC filed its plan of reorganization and related disclosure statement Tuesday with the U.S. Bankruptcy Court for the District of Delaware.

Under the plan, debtor-in-possession facility claims will be paid in full in cash from the proceeds of exit facility loans.

The company’s pre-bankruptcy credit agreement will be deemed to be amended and restated by a new secured term loan agreement, and holders of pre-bankruptcy credit agreement claims will receive a share of new secured term loans, solely to the extent the company and the reorganized consenting lenders decide to issue those loans, as well as a share of a new equity interests pool.

If holders of general unsecured claims vote as a class to accept the plan, each holder of a general unsecured claim will receive a share of cash. If the class votes to reject the plan, holders will receive a share of new three-year class A contingent value rights.

Old parent interests will be cancelled, and holders will receive no distribution.

However, holders of Panda Temple Power Intermediate Holdings II, LLC interests may receive a share of class B contingent value rights.

Subject to the restructuring transactions, Old Temple I interests will remain effective and will be owned and held by the reorganized parent company and/or another entity.

The disclosure statement hearing is scheduled for June 27.

Panda is a Temple, Texas-based power company. The company filed bankruptcy on April 17 under Chapter 11 case number 17-10839.

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