A federal court hearing that could result in FirstEnergy Solutions emerging from bankruptcy is expected to wrap up late Wednesday.
Tuesday, U.S. Bankruptcy Court Judge Alan M. Koschik in Akron held the first day of the confirmation hearing. The hearing is to confirm whether FirstEnergy Solutions, the unregulated generation arm of Akron-based electric utility FirstEnergy Corp., has met all required bankruptcy code elements.
If Koschik grants his approval following the hearing, First Energy Solutions will emerge from Chapter 11 bankruptcy proceedings as an independent company that would likely change its name before the end of the year. FirstEnergy Solutions is the owner of the Perry Nuclear Power Plant and the Davis-Besse Nuclear Power Station, among other power generation facilities in Ohio.
Signs point toward confirmation. A majority of creditors earlier this month approved the reorganization plan, with the results ratified Aug. 12, according to court filings. It is unclear how soon after the hearing Koschik will issue his ruling.
The First Energy Solutions bankruptcy and upcoming spinoff are part of FirstEnergy Corp.'s plan to return to being a fully regulated electric utility.
First Energy Solutions intends to keep its headquarters in Akron once it exits from bankruptcy, its senior executives have previously said.