Entegra Completes Financial Restructuring and Successfully Emerges from Chapter 11

TAMPA, Fla., Oct. 3, 2014 /PRNewswire/ -- Entegra TC LLC, along with certain of its direct and indirect subsidiaries (the "Company") announced today that the Debtors' Joint Modified Prepackaged Plan of Reorganization Under Chapter 11 of the Bankruptcy Code (the "Plan") has become effective and the Company has successfully emerged from chapter 11 less than two months after filing voluntary petitions for relief under chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware. The Company's chapter 11 cases are jointly administered under Case No. 14-11859 (PJW).

"Today marks the start of a new chapter for Entegra," said Michael R. Schuyler, the Company's Chief Executive Officer. "With the completion of our financial restructuring, we have established the financial stability needed to optimally manage Entegra's assets and to maximize value for our stakeholders."

In connection with the Plan, the Company successfully completed a balance sheet restructuring, which significantly improved the Company's capital structure by eliminating more than $700 million in funded debt obligations and improved the Company's liquidity by extending the maturity dates thereunder.

Mr. Schuyler added, "With the support of our investors, vendors, and lenders, and the determination and hard work of our valued employees, we are pleased that Entegra has successfully navigated the chapter 11 process in less than two months while operating our business as usual and without interruption."

For additional information concerning the Company's restructuring you may contact Prime Clerk LLC, the Company's claims, notice, and solicitation agent, by calling the Company's restructuring hotline at (855) 934-8766.

O'Melveny & Myers LLP is serving as the Company's legal advisor and Houlihan Lokey Capital, Inc. is serving as the Company's financial advisor. Skadden, Arps, Slate, Meagher & Flom LLP represents a consortium of lenders—comprising 100% of the Company's second lien lenders and approximately 85% of its third lien lenders—who agreed to support the Plan.

About Entegra

Entegra is an independent power company that owns and operates one of the largest gas-fueled power stations in the United States, located in El Dorado, Arkansas. It also owns one-half of a similar sized, gas-fueled power station located in Gila Bend, Arizona. The Company markets electric power from these two power stations to wholesale customers in the southeastern and southwestern United States. The Company also owns and operates the 42 mile Trans-Union Interstate Pipeline, which flows gas from Louisiana to the station in Arkansas. The Company's corporate headquarters and asset management group are based in Tampa, Florida. 

Forward Looking Statements

This press release contains "forward-looking statements," within the meaning of the federal securities laws that involve risks and uncertainties. All statements herein that address activities, events, conditions, or developments that the Company expects or anticipates will or may occur in the future are generally forward-looking statements. These forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause the actual results, performance, achievements, or transactions of the Company and its affiliates to be materially different from any future results, performance, achievements, or transactions expressed or implied by such forward-looking statements. Risk factors that may affect the Company's results include, but are not limited to, the following: natural gas prices; competition; completion of certain strategic sales; production capabilities; changes in the regulations applicable to wholesale electric energy sellers; fluctuations in other commodity costs; financial leverage; changes in federal and state tax laws; litigation; and the Company's ability to hire and retain qualified personnel. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. The Company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.

SOURCE Entegra TC LLC