Longview Power LLC heads to bankruptcy court Monday to try to win a judge’s approval of its plan to exit chapter 11 bankruptcy protection.
Longview, the operator of a 700-megawatt power plant in West Virginia that was the largest privately funded project in the state’s history, sought bankruptcy protection in August 2013 after being plagued with operational issues since its 2011 launch.
A key aspect of the plan is a settlement deal negotiated with Norwegian construction firm Kvaerner ASA and Siemens AG, which built portions of the coal-fired power plant and pushed to be paid before some of the power plant’s other debts. The settlement also ends litigation between Longview and insurer First American
Title Insurance Co. over the payout of a policy covering the builders’ senior claims. Under the deal, Kvaerner
will receive $48 million in cash, with Longview paying $2 million of that amount, Siemens contributing $5 million and First American providing $41 million.
Company officials have put a reorganization plan, which explains how all of the plant’s debt will be repaid, before Judge Brendan Shannon of the U.S. Bankruptcy Court in Wilmington, Del.