Homer City Generation RSA Approved


The U.S. Bankruptcy Court approved Homer City Generation’s motion for authority to assume a restructuring support agreement and granting related relief.

As previously reported, “In light of the conclusion of the sales process without a transaction and Homer City’s unsustainable debt, Homer City, certain Senior Noteholders (collectively, the ‘Consenting Noteholders’), and certain affiliates of General Electric Company (the ‘GE Parties,’ and collectively with Homer City and the Consenting Noteholders, the ‘Restructuring Support Parties’) focused their efforts on a standalone restructuring transaction (the “Restructuring Transaction”) involving a debt-for-equity swap of the Notes and a transfer of ownership and financial management to the holders of those Notes, including the Consenting Noteholders. Through extensive negotiations, the Debtor built consensus around the terms of the Restructuring Transaction, which culminated in the execution of the Restructuring Support Agreement, dated as of January 9, 2017, (the ‘Restructuring Support Agreement’), by and among Homer City, the GE Parties and the Consenting Noteholders.”

In addition, “Significantly, the Restructuring Support Agreement has the broad support of the Consenting Noteholders and the GE Parties. Indeed, approximately 86% in principal amount of the Notes (including the approximately 16% of the Notes held by the GE Parties) – have signed on.”

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