FirstEnergy's nuclear, coal plant units file for Chapter 11 bankruptcy
The voluntary petitions have been filed by FirstEnergy Solutions (FES) and FirstEnergy Nuclear Operating under Chapter 11 of the Federal Bankruptcy Code with the U.S. Bankruptcy Court in the Northern District of Ohio in Akron.
The companies hold over $550m in cash, which they expect to be sufficient to continue normal operations during the restructuring process.
The filing, however, excludes FirstEnergy or its distribution, transmission, regulated generation and Allegheny Energy Supply (AE Supply) subsidiaries.
FES president Donald Schneider said: "Given the prospective timing of federal and state review and our ongoing cash needs and debt service obligations, the FES and FENOC Boards of Directors determined that the Chapter 11 filing represents our best path forward as we continue to pursue opportunities for restructuring, asset sales and legislative and regulatory relief.
“We believe that this decision will best serve our customers, employees and business partners." ■