Fresh-start accounting for a power generating facility

Fresh-start accounting for a power generating facility

Stout assisted an owner and operator of a 700 net MW coal-fired electrical power generating facility after it filed for Chapter 11 bankruptcy as a result of lessened demand for electricity due primarily to long-term power pricing pressure along with the company’s pre-existing debt leverage.

Stout performed a business enterprise valuation to establish the fair value of the entity upon emergence, as well as a valuation of the company’s personal property and real property assets across its two primary operating entities in conjunction with fresh-start accounting procedures. Stout also determined the fair value of a senior secured term loan with various features related to repayment fees and payment in-kind interest that was issued in conjunction with the emergence.