FirstEnergy Solutions Corp., FENOC, Receive Court Approval to Solicit Votes on Plan of Reorganization

AKRON, Ohio, May 20, 2019 /PRNewswire/ -- FirstEnergy Solutions Corp. ("FES" or the "Company") and FirstEnergy Nuclear Operating Company ("FENOC") today announced that the U.S. Bankruptcy Court overseeing the Chapter 11 restructuring has authorized the Company and FENOC to begin soliciting votes for the Plan of Reorganization ("the Plan").

The Honorable Judge Alan M. Koschik of the U.S. Bankruptcy Court for the Northern District of Ohio today approved the adequacy of the Company's Disclosure Statement. The Company will next mail copies of the Plan and related materials, as well as voting ballots, to all eligible creditors.

The Court is scheduled to consider confirmation of the Plan on August 20 and August 21, 2019. The schedule allows the Company and FENOC to remain on track to emerge from the Chapter 11 process in late 2019. The proposed transactions contemplated under the Plan are subject to a variety of conditions, including the entry of an order of the Bankruptcy Court confirming the Plan and the satisfaction of other conditions to the effectiveness of the Plan, including all regulatory approvals.

"We are pleased with today's ruling and look forward to moving on to the next phase of the restructuring, heading towards a successful exit from the bankruptcy process, and continuing to serve our customers," said John W. Judge, President and Chief Executive Officer of FES. "Notably, the Plan already has substantial support from the various parties who previously signed the Restructuring Support Agreement (the 'RSA')."

As previously announced, the Company, FENOC, the official committee of unsecured creditors (the "Committee"), two creditor groups representing a majority in aggregate amount of the Debtors' funded indebtedness and sale and leaseback certificate-holders (the "Ad Hoc Groups"), a group of creditors holding claims against FES and FENOC (the "FES Creditor Group"), and certain other creditors have reached agreement on the terms of the RSA that contemplates the continued ownership and operation of the Company's retail and wholesale load-serving business following emergence from the Chapter 11 process.

The Plan will enable the Company to emerge as a fully integrated independent power producer focused on maximizing the operating and financial synergies of its retail, nuclear and fossil generating assets. The Company will continue operating its nuclear and fossil generating assets until their previously announced deactivation dates, with a possibility of running the units for an extended period if the Company obtains sufficient legislative support and / or meaningful market reforms. 

Copies of the Plan, Disclosure Statement and related materials can be found at: https://cases.primeclerk.com/fes/Home-Index.

SOURCE FirstEnergy Solutions Corp.

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