Talen Energy Supply Recapitalization
On May 10, 2022, Talen Energy Corporation (“TEC”) announced a transformative recapitalization of its Talen Energy Supply (“TES”) subsidiary to strengthen its balance sheet, fund ESG and data center growth initiatives and maximize value to stakeholders.
This recapitalization includes the support of a large number of TES creditors through a Restructuring Support Agreement, or RSA. In order to effectuate the consensual restructuring contemplated by the restructuring support agreement, TES and certain of its subsidiaries have voluntarily filed for reorganization under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of Texas.
TEC, its Cumulus Growth subsidiary, and TES’ LMBE subsidiaries are excluded from the in-court process.
Talen Continues to Operate in Ordinary Course
TES expects to continue its day-to-day business in the normal course and intends to move as quickly as possible through the process. TES has filed customary “first day” motions with the Court to ensure no interruption to employee wages, healthcare, and other benefits as well as the ability to conduct routine business with vendors and other business partners, including the resumption of hedging activities. TES’ plants will continue to generate needed electricity for the markets they serve.
Court documents and other information are available on a website hosted by TES’ claims agent, Kroll, at https://cases.ra.kroll.com/talenenergy. TES has also established a call center for questions at 844-721-3899 if calling from within the United States or Canada or 347-292-4080 if calling from outside these areas. Creditor inquiries can also be directed to [email protected]. May 2022 Cleansing Materials are available at this link, August 2022 Cleansing Materials are available at this link.