FirstEnergy Solutions Corp., the competitive subsidiary of Akron-based utility FirstEnergy Corp., said Wednesday it has agreed to terms with its creditors on a plan to emerge from Chapter 11 bankruptcy as a privately held company later this year.

FES, which declared bankruptcy along with the FirstEnergy Nuclear Operating Company on March 31, announced the restructuring agreement in a news release Wednesday.

The release said the agreement will allow FES "to emerge as a fully integrated independent power producer" and continue to operate its "nuclear and fossil generation" power plants until their previously announced deactivation dates, "with a possibility of running the units for an extended period if [FES] obtains sufficient legislative support and meaningful market reforms." Under terms of the agreement, the company would emerge from bankruptcy by the end of October.

"This is an important step in ensuring the value of the FES estate is maximized for the benefit of all of our stakeholders," said Donald Schneider, president of FirstEnergy Solutions. "It is important to note that nothing in this agreement provides for [FES] to continue operating its fossil or nuclear generation assets beyond their currently contemplated deactivation dates. Without legislative support and market reforms operating beyond those dates will be a significant challenge. We remain optimistic that such support may be forthcoming, will solidify the tax base and tremendous economic value these plants provide to the surrounding communities in Ohio and Pennsylvania."