Omnis Energy: Judge Disqualifies HSF Kramer from Representing Pleasants Power Station in Bankruptcy Case

Young Conaway remains in place; court-directed sale and Omnis challenges proceed on existing schedule

WILMINGTON, Del., Sept. 11, 2026 /PRNewswire/ -- The U.S. Bankruptcy Court disqualified HSF Kramer from representing Pleasants Power Station in Chapter 11, sustaining objections raised by Omnis Fuel Technologies and the Office of the United States Trustee and denying the retention application.

"Applying an objective standard, I conclude that Kramer's prior representation of TRAG gives rise to an actual conflict of interest, precluding its retention by the Debtor," Owens said. She called Kramer's work for the Debtor on TRAG's cash collateral and related protections, stipulations and releases "a glaring example of the conflict." TRAG, led by celebrity motivational speaker Tony Robbins, and affiliate RG Energy are Pleasants' largest asserted creditors and hold substantial interests in its parent companies.

Owens also found that Kramer possesses relevant client confidences it cannot reveal. Even if the conflict were only potential, she ruled, Young Conaway could not adequately resolve it without "unnecessary confusion, inefficiencies, distraction and distrust."

"Today's ruling validates the serious concerns Omnis brought before the Court about the integrity of the Pleasants process," said Charles Gassenheimer, President of Omnis Fuel Technologies. "Decisions affecting the power station, its employees and its future must be made through a fair and transparent process."

Legal transition begins

Owens expressed "grave concerns" about the original decision of the Debtor's independent manager to hire Kramer when the firm was already providing services to TRAG. "Nonetheless, I have no choice," she said. "Kramer cannot be retained under Section 327."

Young Conaway remains in place as the Debtor's Delaware co-counsel. It had been designated to serve as conflicts counsel on matters Kramer could not handle. Owens said she was confident that "Young Conaway or any appropriate replacement co-counsel" could transition into Kramer's broader role "quickly and efficiently," so that "this early stage proceeding will not be disrupted."

Debtor's counsel said it might appeal and orally requested a stay. Owens directed that any request to stay the disqualification order pending appeal be made by written motion, with other parties given time to respond. She declined to grant a stay orally. No stay was entered.

Sale and challenges remain on schedule

The decision does not remove Houlihan Lokey as the Debtor's investment banker for the West Virginia power station's sale or alter the sale calendar. On September 3, Owens said, "I want the parties' laser focus on the sale process," and would not jeopardize "the integrity of that process or undermine the bidders and their attention to this."

Omnis supported Houlihan's retention and will cooperate in developing qualified bidders. Houlihan and current management administer the process, subject to fiduciary duties, consultation and Owens' oversight. Omnis/Quantum and TRAG/RGE have equivalent consultation-party rights; TRAG/RGE separately assert lender, lien and credit-bid rights.

Preliminary bids are due September 29. A possible stalking-horse bidder is to be designated by October 22, final binding bids are due November 9, and an auction will be held November 12 if qualified competing bids are received. The sale hearing is November 18.

The Court will begin an evidentiary hearing on final cash collateral October 13. Omnis will challenge asserted debt and liens, releases, adequate-protection payments and other lender protections. Those issues figured prominently in Owens' conflict analysis and will now be handled for the Debtor without Kramer.

Omnis' motion to dismiss remains scheduled for trial December 8–11, together with its alternative request for an independent Chapter 11 trustee. Omnis contends that the filing lacked proper corporate authority and was not made in good faith. Owens specifically identified that trial as directly implicating TRAG. Kramer will no longer defend current management in those proceedings.

Omnis remains fully engaged

Omnis will advocate for proposals that preserve operations and employment, maximize the value of the 1,278-megawatt station and recognize its longer-term potential, including continued development of the Quantum Reformer hydrogen technology installed at the site.

"Disqualification removes a serious obstacle to confidence in this process," Gassenheimer said. "The legal transition must occur without sacrificing Pleasants' value or disrupting competitive bidding. Omnis will work constructively on the sale while continuing to pursue its motion to dismiss or appoint an independent trustee."

About Omnis Energy

Omnis Energy develops technologies and projects intended to produce reliable energy while improving the environmental and economic performance of existing energy resources. The Omnis group became involved with Pleasants Power Station in 2023 as part of the effort to preserve the plant and develop a viable long-term future for the facility.

SOURCE Omnis Energy