Power Purchase Agreements in Bankruptcy: Competing Interests Under the Bankruptcy Code and Federal Power Act
Recording of a 90-minute premium CLE webinar with Q&A
This CLE course will discuss the divergent law on whether an energy industry debtor can reject its power purchase agreements (PPAs) and provide bankruptcy counsel with an understanding of how this issue might be resolved in bankruptcy proceedings.
- Recent developments
- Comparison of the conflicting federal laws
- The Federal Energy Regulatory Commission
- Section 365 of the Bankruptcy Code and the jurisdiction of federal bankruptcy courts
- Prior precedents
- Practical considerations and best practices
The panel will review these and other key issues:
- What can happen to a PPA in bankruptcy?
- How long does a debtor have to decide whether to reject or assume its PPAs?
- What considerations are likely to factor into a debtor’s decision whether to assume or reject its PPAs?
- What happens to a PPA during the period when the debtor is deciding whether to assume or reject?
- To the extent power is provided to a debtor during the pendency of its bankruptcy, is the PPA counterparty’s claim for payment afforded priority status?
- What must a debtor show to convince the bankruptcy court to grant a motion to reject a PPA?
- If a debtor moves to reject a PPA, what grounds would a counterparty have for opposing that motion?
- If a debtor prevails in its motion to reject, either by overcoming an opposition or because the counterparty does not object, what happens then?
- What will the counterparty receive for its rejection damages as an unsecured claim?
- What concerns relate to any debt financing or other investments in projects where the offtaker under a PPA became a debtor in bankruptcy?
Oren B. Haker
Mr. Haker focuses on the representation of a wide range of parties in workouts, debt restructurings, receiverships and... | Read More
Mr. Haker focuses on the representation of a wide range of parties in workouts, debt restructurings, receiverships and bankruptcy cases, including corporate debtors, trade and financial creditors, creditors’ committees, lessors, and strategic and financial investors acquiring assets of troubled companies. His experience includes pre¬-bankruptcy planning, including advising directors and officers on insolvency issues, and exploring out-of-court and non¬-bankruptcy options in the first instance. In bankruptcy cases, Mr. Haker’s experience includes cash collateral and DIP financing matters, intercreditor disputes, reclamation and Section 503(b)(9) issues, bankruptcy sales under Section 363, Chapter 11 plan and post-confirmation trust formation issues, fraudulent transfer and preference litigation, and application of safe harbor provisions of the Bankruptcy Code.Close
Alan K. Mills
Barnes & Thornburg
A trusted adviser, dexterous counselor, skilled advocate, accomplished litigator and effective relationship manager,... | Read More
A trusted adviser, dexterous counselor, skilled advocate, accomplished litigator and effective relationship manager, Mr. Mills serves as general counsel to domestic and foreign businesses, financial institutions, and other organizational clients and individuals. He currently serves as Chair of the firm’s Special Servicer Team and he is a former Chair of the firm’s Finance, Insolvency and Restructuring Practice.Close
Sean T. Scott
Mr. Scott represents institutional lenders, bank groups, hedge funds and other creditors in out-of-court workouts and... | Read More
Mr. Scott represents institutional lenders, bank groups, hedge funds and other creditors in out-of-court workouts and in-court bankruptcy proceedings. In the course of his practice, he also advises corporate clients on distressed asset sales and acquisitions and on structuring considerations in complex debt transactions.Close
Chapman and Cutler
Mr. Wilamowsky regularly represents investors, creditors, and lenders in complex restructurings, in and out of... | Read More
Mr. Wilamowsky regularly represents investors, creditors, and lenders in complex restructurings, in and out of bankruptcy court. He has extensive experience representing clients in bankruptcy litigation matters, at both the plenary and appellate levels, and in connection with the restructuring of distressed development projects, in both domestic and cross-border proceedings. He also represents investors and buyers of distressed assets through Chapter 11 sales.Close