Bankrupt Longview Power Gets Lender Takeover Plan Approved

West Virginia power plant operator Longview Power LLC received approval to reorganize in bankruptcy through a debt-cutting transaction that hands the business over to the company’s secured lenders.

Longview’s plan to exit bankruptcy under a creditor agreement reached before the company filed for Chapter 11 in April was approved by Judge Brendan L. Shannon during a telephonic hearing Friday at the U.S. Bankruptcy Court for the District of Delaware.

Pursuant to the plan, Longview will swap $350 million worth of pre-bankruptcy lender debt for equity in a reorganized version of the company and emerge from Chapter 11 with $40 million ...