Pleasants Power Station Bankruptcy Enters Cooperation Phase

The breakthrough follows U.S. Bankruptcy Judge Karen B. Owens’ September 11 disqualification of HSF Kramer, a firm previously cited for conflicts of interest involving lender TRAG. Since stepping in, Kirkland & Ellis has secured a second interim order allowing the continued use of operating cash, effectively deferring complex collateral litigation while the sale proceeds. As part of this cooperative framework, the parties have proposed adding Alan Carr of Drivetrain LLC as a second director to provide additional independent oversight.

Despite these administrative gains, significant disputes remain unresolved. A motion to dismiss the bankruptcy case or appoint a Chapter 11 trustee, filed by Omnis and Quantum, is still pending before Judge Owens. Meanwhile, the sale of the 1,278-megawatt facility remains active, with investment banker Houlihan Lokey engaging 92 prospective buyers. With the stalking-horse designation set for October 22 and a final sale hearing scheduled for November 18, stakeholders are racing to finalize a deal before the court addresses the dismissal motion in December.