Content area
Full text
Walnut Creek Mining Co. has filed a new objection in merchant generator Optim Energy LLC's bankruptcy case that it claims was filed to "raise threshold issues that block confirmation" and "identify areas of inadequate disclosure."
Optim Energy filed an amended plan of reorganization April 10 that includes eight "subplans." Walnut Creek filed its objection April 15 in the U.S. Bankruptcy Court for the District of Delaware. (Case No. 14-10262-BLS)
Walnut Creek argues that "the real death blow" for Optim Energy is that none of the subplans are confirmable under the bankruptcy code and it is raising these issues to relieve Optim from a "fools' errand." The mining company points out that by the debtors' own admission, "four of the eight Subplans fail on their face" to satisfy bankruptcy requirements.
Walnut Creek, an indirect wholly owned subsidiary of Blackstone Energy Partners LP, said it is the largest creditor in the case other than Bill Gates' private investment firm, Cascade Investment LLC. It argues that Optim's plan grants "overly broad and inappropriate release provisions, including the releases of former directors and officers" and uses "death trap provisions to coerce voting."
Optim Energy was formed in 2007 as EnergyCo LLC, a joint venture between PNM Resources Inc. and Cascade Investment subsidiary ECJV Holdings LLC to acquire or build merchant power plants and sell wholesale power in the Electric Reliability Council of Texas Inc. market.
Optim and its subsidiaries initially filed for Chapter 11 bankruptcy protection in February 2014, citing continuing liquidity constraints brought about by a downturn in the state's wholesale power market.
As part of its amended bankruptcy plan,...