Talen Energy Debt-to-Equity Bankruptcy Plan Gets Court Approval

Power generation company Talen Energy Supply LLC won bankruptcy court approval of a restructuring plan that converts $1.4 billion of debt to equity and contemplates raising up to $1.9 billion in new equity financing.

The company, a unit of Talen Energy Corp., and its affiliated entities can emerge from bankruptcy under a Chapter 11 plan to be formally approved by Judge Marvin Isgur of the US Bankruptcy Court for the Southern District of Texas. Isgur said at a hearing Thursday he would sign off on the company’s reorganization proposal following a final review of revisions made to clauses that exculpate ...