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FirstEnergy’s Bankruptcy Plan Faces Pushback From U.S., Unions

Aug. 2, 2019, 10:40 PM

The U.S. government is opposing bankrupt FirstEnergy Solutions Corp.'s reorganization plan over its liability release for some third parties against future lawsuits.

The power plant operator, which is a subsidiary of FirstEnergy Corp., and other debtors in the Chapter 11 case cannot confirm a plan with the releases for non-debtor third parties, the Justice Department said in an Aug. 2 filing.

Other interested parties in the case, including the Federal Energy Regulatory Commission, also objected Aug. 2 to the current version of the plan, citing concerns over its impact on employees and customers.

FirstEnergy Solutions, which declared bankruptcy in March, ...

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