Power-plant operator GenOn Energy Inc. claimed victory yesterday in a high-stakes fight that had clouded its plan to separate from NRG Energy Inc. and exit bankruptcy, the Wall Street Journal reported. Judge David Jones assigned a zero dollar value to the claims that owners of Maryland power plants have been pressing against GenOn and its parent NRG. The ruling eases the way for GenOn to gain court-approval of its chapter 11 plan on Monday in the U.S. Bankruptcy Court in Houston, Texas. GenOn filed for chapter 11 protection in June, and the company has the support of most of its creditors for a restructuring that will swap debt for equity. NRG isn’t in bankruptcy, but it is undergoing a transformation that involves cutting ties with its subsidiary. The company acquired GenOn, an operator of 32 power plants in eight states, in December 2012. Flat demand, falling prices and new competition have strained GenOn’s finances. GenOn’s dispute with the owners of two power plants in Maryland arose before the bankruptcy.
