Houston-based Talen Energy filed the largest Texas corporate bankruptcy case of 2022 late Tuesday citing more than $3 billion in debt.
A plethora of large law firms – Akin Gump, Paul Weiss, Kirkland & Ellis, Davis Polk, Vinson & Elkins and King & Spalding – are involved. Most of them represent unsecured noteholders and creditors.
Talen General Counsel Andrew Wright chose to file in the Southern District of Texas and the case has been assigned to U.S. Bankruptcy Judge Marvin Isgur.
Wright, who was the general counsel at Energy Future Holdings during its four-year bankruptcy odyssey, selected Weil, Gotshal & Manges to be the lead debtor’s counsel. The Weil lawyers heading the restructuring team include Houston partner Gabe Morgan, Dallas partner Paul Genender and New York partner Matt Barr.
The Kirkland team from Texas includes debt finance partners Mary Kogut, tax partner Mark Dundon and capital markets partners Matt Pacey, Michael Rigdon and Atma Kabad. Kirkland partner Michael Wright and associate Samantha Siegler are also involved.
Judge Isgur approved an interim debtor-in-possession financing for $815 million. Second day hearings are scheduled for June 8.
Other Texas lawyers involved in the Talen bankruptcy include Weil counsel Cliff Carlson and Weil associate Hillarie James – both from Houston. Weil Dallas associates Jake Rutherford and Jenae Ward are also involved.
The private equity firm Riverstone Holdings acquired Talen for $5 billion in 2016. Riverstone General Counsel Stephen Coats has hired V&E to represent it in the Chapter 11.