Arik Preis Comments on Longview Power Bankruptcy Settlement

Akin Gump financial restructuring partner Arik Preis on a settlement approved by a bankruptcy judge in Wilmington, Del., that will provide Longview Power with free repairs to its coal plant and resolve litigation between it and one of its contractors.

Preis, who is co-counsel to a group of lenders that hold 65 percent of Longview’s prepetition debt and that backstopped a $150 million debtor-in-possession loan, said that these lenders have the most at stake, given the amount they invested and the fact that their investment will convert to equity under the proposed chapter 11 plan.

He noted that an operational plant is essential moving forward and that this settlement establishes a framework to repair the plant.