Former Footprint disclosure statement hearing slated for June 1

By Sarah Lizee

Olympia, Wash., April 21 – Salem Harbor Power Development LP, formerly Footprint Power Salem Harbor Development LP, filed its Chapter 11 plan and related disclosure statement on Wednesday with the U.S. Bankruptcy Court for the District of Delaware.

A hearing on the disclosure statement is scheduled for June 1.

As previously reported, the company filed Chapter 11 to implement a dual-track plan that provides for either a stand-alone restructuring or a sale transaction.

Under the plan, holders of administrative claims and priority tax claims will be paid in full.

Holders of other secured claims will receive payment in full in cash, the collateral securing their claims, or reinstatement of their claims.

Holders of other priority claims will receive payment in full in cash.

If a stand-alone restructuring takes place, holders of credit facility claims will receive a pro rata share of 100% of the new common equity and exit facility loans, if applicable. If a sale takes place, holders will receive their pro rata share of the net sale proceeds until all claims are satisfied in full in cash.

If a stand-alone restructuring takes place, holders of general unsecured claims will receive their pro rata share of proceeds from the disposition of unencumbered assets. If a sale takes place, holders will receive their pro rata share of proceeds from the disposition of unencumbered assets and, only to the extent credit facility claims are paid in full, the net sale proceeds remaining until all general unsecured claims are paid in full in cash.

Intercompany claims will be reinstated or canceled with no distribution.

Holders of section 510(b) claims will receive no recovery.

Interests will be canceled with no distribution.

The Salem, Mass.-based power plant operator filed bankruptcy on March 23 under Chapter 11 case number 22-10239.

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