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Subsequent Events (Notes)
3 Months Ended
Mar. 31, 2018
Subsequent Events [Abstract]  
Subsequent Events
SUBSEQUENT EVENTS

On April 20, 2018, FirstEnergy reached an agreement in principle with two groups of key FES creditors in the FES Bankruptcy. The first is an ad hoc group, which includes a majority of the pollution control revenue bonds supported by notes issued by FG and NG and the holders of senior notes issued by FES, while the second group includes the majority of Bruce Mansfield unit 1 sale and leaseback transaction certificate holders. The agreement confirms FE will pay certain pre-petition FES and FENOC employee-related obligations, which include unfunded pension obligations and other employee benefits, and provides for the waiver of certain related party claims held by FE, among them the full borrowings by FES under the $500 million secured credit facility, the $200 million credit agreement being used to support surety bonds and the BNSF/CSX rail settlement guarantee. Additionally, the agreement provides for, among other things, (1) the full release of all claims against FirstEnergy by FES, FENOC and their creditors; (2) a $225 million cash payment from FirstEnergy which includes a reversal of the $88 million NOL purchase prior to the FES Bankruptcy; (3) up to a $628 million note from FirstEnergy, which is intended to represent the estimated value of a worthless stock deduction associated with the FES Bankruptcy and is designed to trade at par value of such note when issued; (4) the transfer of the Pleasants Power Station to FES for the benefit of FES’ creditors; and (5) a right of FirstEnergy to share in recoveries after an agreed-upon threshold is met. FE will also provide FES certain assistance in areas of operations, regulatory and governmental affairs.
The agreement will be subject to approval by the FE, FES, FENOC and AE Supply Boards of Directors, the execution of definitive agreements and the approval of the Bankruptcy Court. Additionally, the Bruce Mansfield certificate holders’ support for the agreement is subject to and conditioned upon the ultimate implementation of the agreed upon treatment of certain claims of the Bruce Mansfield certificate holders. The ad hoc group and Bruce Mansfield certificate holders will use their best efforts to have the Official Committee of the Unsecured Creditors, appointed in the FES Bankruptcy, as well as any remaining key creditors join the settlement by June 15, 2018. There can be no assurance that a definitive agreement will be finalized and approved and, even if approved, whether the conditions to the settlement will be satisfied, and the actual outcome of this matter may differ materially from the terms of the agreement in principle described herein.