Aug 5 Independent power company Entegra Power
Group LLC filed a prepackaged bankruptcy and expects to emerge
from Chapter 11 under the control of its junior secured lenders,
according to documents in Delaware's U.S. Bankruptcy Court.
Entegra owns El Dorado, Arkansas-based Union River Power
Station, which has an operating capacity of 2,100 megawatts, and
Trans-Union Interstate Pipeline, a 42-mile natural gas
transmission facility that supplies the station. The company is
also an indirect co-owner of Gila River, a 2,334 megawatt power
plant in Arizona.
The company's second-lien lenders, who are owed $237
million, are set to receive a combination of new third-year,
Series A second-lien notes and cash that would be raised from
new Series B second-lien notes.
Entegra's third-lien lenders will exchange their $1.3
billion in claims for $550 million in new third-lien debt and
controlling ownership in the company when it emerges from
bankruptcy, according to documents filed late on Monday.
A prepackaged bankruptcy can slash the amount of time a
company spends in Chapter 11. Entegra is aiming to exit
bankruptcy in September.
The company's current shareholders will be left with
residual equity interests that are activated once third-lien
lenders accumulate $1.3 billion of distributions.
All of the second-lien lenders and over two-thirds of the
third-lien lenders support the restructuring plan, according to
Union and Gila were built for $2.8 billion over a decade ago
by TECO Energy. The power projects were restructured in
bankruptcy in 2005.
(Reporting by Billy Cheung in New York; Editing by Grant