A Jenner & Block corporate bankruptcy team, led by Partners Daniel R. Murray, Melissa M. Root and Andrew J. Olejnik, has successfully negotiated and documented the assumption of leases for two coal-fired power plants owned by affiliates of firm client Public Service Enterprise Group (PSEG). As part of the chapter 11 bankruptcies of Edison Mission Energy and Midwest Generation, LLC, PSEG affiliates closed a transaction with NRG Energy, Inc., whereby NRG has replaced Edison Mission Energy as the guarantor of lease obligations owed to PSEG by Midwest Generation under the leases relating to the Illinois power plants.
Midwest Generation will continue to lease the power plants after all defaults under the leases have been cured, including payment of default interest. NRG also has committed to invest up to $350 million in Midwest Generation to fund environmental modifications. The lease assumption transaction places the PSEG affiliates in a much stronger financial position than they faced at the outset of the Edison Mission Energy and Midwest Generation chapter 11 bankruptcy cases.
In addition to Dan, Melissa and Andrew, other team members included Associates Michael J. Kelly, Abraham M. Salander and Carl N. Wedoff. Additional assistance was provided by Partners David J. Bradford, Robert L. Graham and Donald S. Horvath and Associate Allison A. Torrence.