Talen Energy Supply, part of Talen Energy Corp., recently filed for Chapter 11 bankruptcy as part of its financing restructuring. In a statement released Tuesday, Talen Energy Corp. said the subsidiary was “looking to rework its finances after being squeezed by high debt loads, rising gas prices and higher coverage collateral requirements.”
Talen spokeswoman Taryne Williams said the move would not affect operations at the Montour plant near Washingtonville or the Susquehanna nuclear power plant near Berwick, or impact a agreement with the Middle Susquehanna Riverkeeper regarding pollution monitoring and cleanup near the Montour plant or construction projects. a solar panel farm nearby.
“Talen Energy Supply (TES) plans to operate day-to-day operations in the normal course,” Williams wrote in an email response. “TES has filed the usual ‘day one’ motions with the court to ensure there is no disruption to wages, health care and other employee benefits, as well as the possibility of conduct day-to-day business with suppliers and other business partners.
Williams said Talen Energy Corporation and its subsidiary Cumulus Growth are not entities in the bankruptcy filing.
“The Cumulus Data Center Campus Project, which is adjacent to the Susquehanna Nuclear Generating Station, and the Montour Solar One Development Project both fall under Cumulus Growth and are expected to continue uninterrupted,” Williams added.
Montour Solar One, the partnership of Talen Energy Corp. and Pattern Energy, withdrew its application for conditional use to build the solar project after opponents found errors in the application. The company plans to resubmit the application.
Talen reached an agreement in early 2021 to close its ash waste disposal site at the Montour plant in seven years and stop burning coal in five years, as well as to undertake more immediate conservation measures to stem the water pollution near the factory.
The agreement between the power company and the Middle Susquehanna Riverkeeper Association also stipulates that Talen will donate Chillisquaque Lake, the Montour reserve and $1 million to maintain the reserve when the plant closes, as well as than providing $200,000 to the Riverkeeper Association to monitor pollution.
The new owner of the reserve will receive the $1 million payment from Talen within two years after the plant ceases to operate and no longer requires water from Chillisquaque Lake for cooling.
Montour Area Recreation Commission (MARC) Director Bob Stoudt said: “At this point, the Montour Area Recreation Commission does not expect any changes to the Montour Reserve. We’re in wait-and-see mode at this point, but we haven’t heard anything to the contrary.
Bloomberg News reported on Tuesday that Talen Energy Supply is the company’s debt issuance vehicle.
According to Bloomberg, “(TES) had reached a restructuring agreement with a group of bondholders that will see creditors participate in an equity rights offering of up to $1.65 billion and transform more than $1.4 billion of dollars of their unsecured notes into shares, according to a statement Tuesday.
“TES also secured $1.76 billion in bankruptcy financing from a group of banks including Citigroup Inc., Goldman Sachs Group Inc. and Royal Bank of Canada. This consists of a $1 billion term loan, a $300 million revolving credit facility and a $458 million letter of credit facility, the US company said in a statement,” Bloomberg reported.
A Chapter 11 filing allows a business to continue operating while it develops a creditor repayment plan.