Energy / FirstEnergy

Bankruptcy court OKs FirstEnergy Solutions settlement, setting stage for reorganization

FirstEnergy’s downtown Akron headquarters.

AKRON — “U.S. Bankruptcy Judge Alan Koschik said late Tuesday that he will approve a complicated settlement of financial issues between FirstEnergy and its bankrupt subsidiary FirsrtEnergy Solutions.

FirstEnergy will make a settlement payment of $225 million to FES and issue $628 million in notes for the subsidiary that will mature on Dec. 31, 2022. These are funds that would go to the FES “estate,” meaning money for its many creditors.

…FES added a paragraph to the settlement, at the end of testimony, noting that nothing in the language would prevent the OCC from objecting to any effort by FirstEnergy to pass costs onto consumers.

The EPA and a group of consumer groups represented by the Environmental Law and Policy Center are concerned about environmental cleanup at the company’s coal and nuclear plants once they are shut down.”

— John Funk, Cleveland Plain Dealer

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