Talen Approved to Seek Vote on $3 Billion Bankruptcy Exit Deal

Talen Energy Supply won court approval to send its bankruptcy-exit plan to creditors for a vote after the company eased auction rules for any long-shot bid that may come in higher than the current $3 billion offer.

US Bankruptcy Judge Marvin Isgur agreed to sign an order letting Talen move forward with its plan to give unsecured noteholders ownership in exchange for canceling $1.4 billion in debt and investing $1.55 billion in the company, one of the biggest competitive power generators in North America.

Talen, based in The Woodlands, Texas, agreed to speed up the process for allowing any competing ...