Heritage Power LLC, a power-plant operator owned by GenOn Holdings LLC filed for bankruptcy with a lender backed-plan to trim debt from its balance sheet, saying its business has struggled because of low electricity prices and operational problems during extreme winter weather last month, WSJ Pro Bankruptcy reported. Heritage said in papers filed Wednesday in the U.S. Bankruptcy Court in Houston that it has struck a deal with its owner, GenOn, and its lenders on a chapter 11 plan to either restructure $686 million in debt or explore selling its assets. The agreement is backed by lenders that own 80% of its $485 million in outstanding term loans, according to court documents. The bankruptcy marks the second time Heritage power plants have passed through chapter 11 since 2017. Heritage and its affiliates were part of the earlier bankruptcy of GenOn, which emerged from chapter 11 in December 2018. GenOn employees manage Heritage, which operates more than a dozen oil- and natural-gas-fired power plants in three states. Heritage President David Freysinge said GenOn formed the companies involved in the current bankruptcy in 2019 to separately own and operate the power plants in New Jersey, Pennsylvania and Ohio. Heritage sells its power to PJM Interconnection LLC, which operates a power grid serving roughly 65 million customers across 13 states and the District of Columbia.
