Optim Energy LLC will pay Blackstone Group LP $5 million to settle their fight in the Texas power-plant operator’s bankruptcy case in exchange for Blackstone dropping its appeal of Optim’s court-approved plan to exit bankruptcy, the Wall Street Journal reported today. Optim said in a Wednesday court filing that the deal will stop all litigation between the sides and will serve as the backbone to a liquidation plan for the six bankrupt Optim entities that weren’t included in a broader reorganization plan approved by a judge late last month. That proposal kept Optim in the hands of Bill Gates’s private investment firm, Cascade Investment. Crucially, Blackstone will drop a $190 million claim it had made for so-called rejection damages. A hearing on the settlement had been scheduled for Aug. 19. Blackstone won’t officially drop its appeal to the broader restructuring until the approval of the liquidation plan for the six entities.
