Judge Delays Confirmation of FirstEnergy Solutions Bankruptcy Reorganization

Aug 22, 2019

A hearing in Akron on First Energy Solutions bankruptcy reorganization has been adjourned for now. A company spokesperson says Judge Alan Koschik, of the United States Bankruptcy Court for the Northern District of Ohio, delayed confirming the company’s reorganization plan at the conclusion of the two-day hearing Wednesday.

Spokesperson Angela Pruitt, from Sitrick and Company,  said the judge wants the company to either reach new union contracts or move to reject them before confirming the plan. First Energy Solutions is negotiating new contracts with workers at the Perry Nuclear Power Plant as part of the bankruptcy reorganization.

In an email Pruitt stated, "The judge explicitly said 'I am not denying confirmation, I’m just adjourning the hearing.'"

Under a  blockbuster new energy bill the state legislature passed last month, First Energy Solutions will receive a billion dollars in state subsidies over the next seven years to keep its two Ohio nuclear plants open.

A follow-up hearing on the company's bankruptcy reorganization is set for September 10.