Omnis Energy Reports New Cooperation on Governance and Operating Cash in Pleasants Power Station Bankruptcy Case

Agreements follow replacement of conflicted counsel as sale advances and dismissal motion remains unresolved

WILMINGTON, Del., Sep 30, 2026 /PRNewswire/ -- Agreements on independent oversight and continued use of operating cash mark a new phase of cooperation in the Pleasants Power Station bankruptcy, Omnis Fuel Technologies, LLC said today. The interim cash agreement supports operations and defers cash-collateral litigation while the sale proceeds; broader disputes remain unresolved.

The developments were reported at a virtual conference requested by Kirkland & Ellis before U.S. Bankruptcy Judge Karen B. Owens. The Debtor sought Kirkland's retention on September 14 to replace disqualified counsel HSF Kramer.

"We are grateful for Kirkland's successful efforts to bring the parties together," said Charles Gassenheimer, President of Omnis Fuel Technologies. "This gives us reason for hope, while important questions remain. We want a fair process that protects the interests of all stakeholders and promotes Pleasants' contribution to West Virginia's economic future."

Judge Owens disqualified HSF Kramer on September 11 for an actual conflict of interest arising from its representation of lender TRAG and the Debtor. She found that the conflict reached "almost every aspect of this restructuring," including lender claims, operating cash, releases and the sale. Replacement counsel opened the way to independent review and cooperation.

Omnis' counsel told the Court that more progress had been made in ten days under Kirkland supervision than in the case's first six weeks. The motion to dismiss or appoint an independent trustee remains unresolved.

Additional Independent Oversight

Kirkland announced agreement to add Alan Carr, chief operating officer of Drivetrain LLC, a financial restructuring services firm, as a second director. The proposed stipulation, Docket 297, would expand the board to two members and give Carr director rights and duties during the case, subject to Court approval.

Nathan was appointed independent manager and sole director of Omnis Pleasants, LLC under a forbearance agreement signed by Omnis. His appointment was announced February 22. On July 26, Nathan authorized the bankruptcy filing. Omnis and Quantum contest his authority to authorize that filing and filed their motion to dismiss the case or appoint a Chapter 11 trustee on August 14.

"We appreciate the parties' agreement to add a new independent perspective within the company in Alan Carr," Gassenheimer said. "Together with genuinely independent legal advice, that perspective can help address difficult questions. Judge Owens' September 11 ruling made this new cooperation possible. Much work remains, and our firm goal remains a maximally sound outcome for the station and its community."

Interim Agreement Preserves Unresolved Issues

The Second Interim Order, entered September 30 as Docket 298, allows use of cash claimed as lender collateral under specified conditions. It defers the October 13 final cash-collateral hearing until after the sale hearing and stays related discovery until the parties confer on a timetable.

The order extends specified deadlines for Omnis, Quantum Pleasants and two creditors—the West Virginia Economic Development Authority and Kuro Infrastructure Delaware, formerly Bilt—to challenge lender claims and liens until five business days after the bid deadline, subject to standing and procedural requirements.

Kirkland is separately seeking agreement on dismissal discovery. Beyond these agreements, Kirkland described continuing efforts to build broad consensus between the parties and get them to "lay down their swords."

Competitive Sale Continues

Kirkland reported that Houlihan Lokey, the investment banker conducting the sale process, contacted 92 prospective buyers. Thirty-nine signed nondisclosure agreements and 13 were identified as proposed acceptable bidders, with qualification continuing. Kirkland reported site visits and multiple bids. No stalking horse was announced.

Stalking-horse designation is due October 22; sale objections, November 2; final bids, November 9. An auction, if necessary, is scheduled for November 12 and the sale hearing for November 18. Trial on Omnis' dismissal or trustee motion remains scheduled for December 8-11.

Omnis and Quantum participate as consultation parties in the sale and have committed not to bid. At the September 3 hearing, Judge Owens granted them consultation rights equal to TRAG's.

"We support a competitive Section 363 sale and will work diligently with Houlihan and the other parties, using our consultation role to do everything we can to achieve the strongest sale result," Gassenheimer said. "Our focus is the best outcome for this 1,278-megawatt station and its stakeholders, with disputes resolved through a fair process that inspires confidence among all concerned."

About Omnis Energy

Omnis Energy develops technologies and projects for reliable energy and improved environmental and economic performance. The Omnis group became involved with Pleasants Power Station in 2023 to preserve the plant from decommissioning and develop its future through technological innovation.

SOURCE Omnis Energy