GenOn Energy Inc. is working to cobble together a deal designed to ease court approval of its chapter 11 bankruptcy exit plan, which is slated for review today, WSJ Pro Bankruptcy reported. The deal relates to legal clashes with owners of plants in Maryland, who claim GenOn and its owner, NRG Energy Inc., improperly manipulated the finances of a subsidiary in a futile effort to avoid bankruptcy for GenOn. Papers filed on Sunday in the U.S. Bankruptcy Court in Houston outline a potential settlement that would end the threat of continued legal problems concerning the subsidiary, GenOn Mid-Atlantic LLC, or GenMa. Lawyers for GenOn, which twice postponed the crucial confirmation hearing on its chapter 11 plan, couldn’t immediately be reached yesterday to discuss the status of talks over the settlement.
