NorthEast Gas: U.S. trustee says exculpations make plan unconfirmable

By Sarah Lizee

Olympia, Wash., Nov. 30 – NorthEast Gas Generation, LLC’s first amended joint Chapter 11 plan drew an objection from the U.S. trustee overseeing the case, according to a Friday filing in the U.S. Bankruptcy Court for the District of Delaware.

“The debtors seek exculpation for a large universe of parties that did not owe any fiduciary duties to the debtors’ estates during the bankruptcy cases, and for acts that did not occur during the pendency of the bankruptcy cases,” region 3 U.S. trustee Andrew R. Vara said in his objection.

“This overreaching extension of the plan’s exculpation provision makes the plan, as currently structured, unconfirmable.”

The Woodlands, Tex.-based NorthEast Gas owns and manages natural gas-fired electric generating facilities. The company filed Chapter 11 bankruptcy on June 18 under case number 20-11597.

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