GenOn Completes Reorganization and Emerges from Chapter 11 with New Management Team and Board of Directors

Effective December 14, merchant generator GenOn Energy, Inc. (GenOn) has successfully concluded a reorganization of substantially all of its businesses. GenOn’s reorganization, initiated with a Chapter 11 filing on June 14, 2017, included a separate reorganization of its wholly owned subsidiary NRG REMA LLC (REMA), which began in October 2018, and concluded today with the simultaneous emergence of GenOn and REMA.

"The newly formed company, GenOn Holdings, Inc. (new GenOn), has strong credit metrics, $400 million of corporate debt, over $85 million of cash, and a $125 million revolving credit facility to provide liquidity and letters of credit for general corporate purposes. A total of 5,000,000 of Class A and B shares are issued and outstanding, comprised initially of 1,905,902 Class A shares and 3,094,098 Class B shares. The Class B shares are linked to 3,094,098 interests in new GenOn’s subsidiary, GenOn Holdings, LLC," the company said

The new GenOn formally appointed David Freysinger as Chief Executive Officer. An industry veteran, Freysinger has served as an independent consultant to power industry clients and held executive level positions at EquiPower Resources, and at GenOn and predecessor companies from 2001 to 2011.

GenOn management includes:

• Darren Olagues, Chief Financial Officer

• Dan McDevitt, General Counsel

• Eric Watts, Chief Commercial Officer

• Mark Gouveia, Senior Vice President, Plant Operations

• Jon Sacks, Senior Vice President, Strategy

GenOn's generation portfolio includes nearly 12,000 MW, with nearly 75% of the fleet powered by natural gas. The assets are primarily in the PJM and NYISO markets. GenOn Mid-Atlantic LLC (GENMA) and its assets remained outside the Chapter 11 process and have a separate legal and financing structure.

A list of GenOn's generating assets can be found here

Through the reorganization process, GenOn satisfied over $1.8 billion of GenOn notes with a combination of (i) $790 million of cash ($190 million in connection with emergence), (ii) $400 million of corporate debt and (iii) reorganized equity, closed or announced $1.2 billion of asset sales, repaid approximately $700 million of claims related to certain notes of GenOn’s wholly owned subsidiary GenOn Americas Generation, LLC, and resolved more than 800 other general unsecured claims.

Through the REMA reorganization, the company amended the Shawville Generating Station facility lease which removed certain covenant restrictions governing REMA’s assets, and eliminated substantial and burdensome lease obligations by transferring its interests in the Keystone and Conemaugh Generating Stations and other consideration to new owners.

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GenOn   M&A   Hires  

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