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FirstEnergy Solutions Settles Customers’ Contract Claims

Nov. 21, 2019, 8:22 PM

Bankrupt FirstEnergy Solutions Corp. has settled a $24 million dispute with a group of customers who will wind up with $3.77 million.

The customers’ claim will be fixed at $12 million, for which they’ll receive company stock, according to FirstEnergy’s settlement motion filed Nov. 20 in the U.S. Bankruptcy Court for the Northern District of Ohio.

The lead claimant will sell the stock, with an estimated value of $3.77 million. The proceeds will be distributed to the customers, representing about 31.4% of their $12 million claim.

The customers alleged that FirstEnergy, which sells power and “energy-related products” in the Midwest ...