A number of federal and state agencies have formally objected to the Chapter 11 bankruptcy reorganization plan filed by FirstEnergy Solutions

The objections, filed Tuesday, could push back the Akron company’s plan to emerge from bankruptcy in May.

Among the objectors include the U.S. bankruptcy trustee, the Securities and Exchange Commission, Nuclear Regulatory Commission, Environmental Protection Agency, the Federal Energy Regulatory Commission, and the Ohio attorney general on behalf of other state agencies. The Ohio Consumers’ Counsel and unions that represent hourly workers at FirstEnergy Solutions have also filed objections.

The objections will be discussed in upcoming hearings before Judge Alan M. Koschik in U.S. Bankruptcy Court in Akron.

A spokeswoman for FirstEnergy Solutions said the company had no statement on these latest filings.

“All of that is going to be handled in court,” said spokeswoman Brenda Adrian.

The U.S. Bankruptcy Court approved the FirstEnergy Solutions reorganization plan in September after the former FirstEnergy Corp. subsidiary, with $3.6 billion in debt, filed for bankruptcy protection on March 31. FirstEnergy Solutions was the unregulated generation arm of Akron electric utility FirstEnergy Corp., with coal and nuclear power plants. The company is no longer owned by FirstEnergy Corp.

FirstEnergy Solutions had been hoping to put its bankruptcy reorganization plan to a confirmation hearing in May.

These latest objections could delay proceedings by months.

U.S. Trustee Dan McDermott filed what was called a limited objection to the bankruptcy plan and asked for more time in the process.

“... the debtors’ proposed discovery timeline appears to foster an expedited discovery procedure that may preclude parties in interest from conducting a full and complete discovery process,” the trustee’s document said. “Therefore, the United States Trustee respectfully requests that the court approve a confirmation discovery schedule that provides parties in interest with a reasonable timeframe to conduct discovery.”

The SEC and other agencies said that FirstEnergy Solutions has not provided enough information on its reorganization plan and that all parties need more time for negotiations.

Just in the past couple of weeks, FirstEnergy Solutions announced a new senior leadership team.

 

Jim Mackinnon covers business and county government. He can be reached at 330-996-3544 or jmackinnon@thebeaconjournal.com. Follow him @JimMackinnonABJ on Twitter or www.facebook.com/JimMackinnonABJ.