Categories Other Industries

FirstEnergy’s ailing units file for bankruptcy

Ohio-based FirstEnergy Corp’s (FE) debt-ridden subsidiaries have filed for Chapter 11 bankruptcy. The power generator made this announcement just days after it revealed the company’s plans to discontinue operations in Ohio and Pennsylvania based nuclear power plants. This process is said to take place over the next three years.

Nearly two years back, FirstEnergy had informed its investors that it was expecting bankruptcy for its loss-making units. And now the company revealed that the units burdened with debt – FirstEnergy Solutions (FES) along with FirstEnergy Nuclear Operating (FNO) -have filed for bankruptcy protection. However, the parent company ‘FirstEnergy Corp’ -that supplies electricity to nearly 6 million Americans- has not declared bankrupt.

FirstEnergy units file for bankruptcy
David Besse Power Plant (Courtesy: Wikimedia Commons)

This hints towards the company’s plan of shifting its focus completely on supplying electricity while winding up its power producing units. This will help FirstEnergy fasten its strategy to become a fully regulated utility. The Ohio-based power generator looks to reorganize and restructure its operations rather than shutting them down.

Struggling to generate profit for its coal and nuclear divisions, the power company had, in fact, begged the Trump administration to intervene and help the ailing units cope with competitors that use natural gas at much lower cost. Things fell out of control over the recent years as the number of natural gas power plants increased in the East and Midwest.  But this move was widely criticized and referred to it as a petition for a corporate bailout.

Struggling to generate profit for its coal and nuclear divisions, the power company had, in fact, begged the Trump administration to intervene and help the ailing units

Both, FirstEnergy Solutions and FirstEnergy Nuclear Operating, together are said to have over $550 million in cash in order to continue its operations normally, during the restructuring process and to fulfill its obligations towards the employees. However, the companies have a huge amount of debt– close to $4 billion—that they owe to creditors as well as the parent company.

During 2017, FirstEnergy Solutions reported a loss of $1.7 billion, or $3.88 per share on revenue of $14 billion.

Most Popular

HPE Earnings: Hewlett Packard Q1 2024 profit drops but beats Street view

Information technology solutions provider Hewlett Packard Enterprise (NYSE: HPE) on Thursday reported lower earnings and revenues for the first quarter of 2024. Earnings, however, exceeded analysts’ forecasts. First-quarter profit, excluding

After entering FY24 on a high note, Costco is all set to report Q2 results

Costco Wholesale Corporation (NASDAQ: COST) stands out in the retail space for its unique business model that enables the warehouse behemoth to grow store traffic and market share constantly. Currently,

Hormel (HRL) expects continued momentum from its foodservice business in FY2024

Shares of Hormel Foods Corporation (NYSE: HRL) soared over 13% on Thursday after the company delivered better-than-expected earnings results for the first quarter of 2024 and reaffirmed its outlook for

Comments

  1. Pingback: Beverly Bultron
  2. Pingback: Chirurgie Tunisie
  3. Pingback: Chirurgie Tunisie
  4. Pingback: Dr. Hassan Azazy
  5. Pingback: fue scholarships
  6. Pingback: periodontology
  7. Pingback: innovation
  8. Pingback: Politics
  9. Pingback: MIS research
  10. Pingback: Research projects
  11. Pingback: Fiverr Earn
  12. Pingback: Fiverr Earn
  13. Pingback: Fiverr Earn
  14. Pingback: Fiverr Earn
  15. Pingback: fiverrearn.com
  16. Pingback: fiverrearn.com
  17. Pingback: fiverrearn.com
  18. Pingback: clima hoy
  19. Pingback: fiverrearn.com
  20. Pingback: fiverrearn.com
  21. Pingback: frenchie colors
  22. Pingback: blogging
  23. Pingback: dog accessories
  24. Pingback: Fiverr.Com
  25. Pingback: FiverrEarn
  26. Pingback: Fiverr
  27. Pingback: FiverrEarn
  28. Pingback: future university
  29. Pingback: french bulldog
  30. Pingback: FUE
  31. Pingback: Office packing
  32. Pingback: Interstate moving
  33. Pingback: Classic Books 500
  34. Pingback: FiverrEarn
  35. Pingback: FiverrEarn
  36. Pingback: Coach
  37. Pingback: Media
  38. Pingback: FiverrEarn
  39. Pingback: How to start porn
  40. Pingback: partners
  41. Pingback: tinnitus
  42. Pingback: Social Justice
  43. Pingback: prostadine
  44. Pingback: Sport analysis
  45. Pingback: FiverrEarn
  46. Pingback: FiverrEarn
  47. Pingback: live sex cams
  48. Pingback: FiverrEarn
  49. Pingback: FiverrEarn
  50. Pingback: FiverrEarn
  51. Pingback: FiverrEarn
  52. Pingback: FiverrEarn
  53. Pingback: FiverrEarn
  54. Pingback: FiverrEarn
  55. Pingback: FiverrEarn
  56. Pingback: FiverrEarn
  57. Pingback: FiverrEarn
  58. Pingback: Slot Online
  59. Pingback: Kuliah Termurah
  60. Pingback: FiverrEarn
  61. Pingback: FiverrEarn
  62. Pingback: FiverrEarn
  63. Pingback: FiverrEarn
  64. Pingback: FiverrEarn
  65. Pingback: prodentim legit
  66. Pingback: cheap sex cams
  67. Pingback: fullersears.com
  68. Pingback: live sex cams
  69. Pingback: live sex cams
  70. Pingback: frt trigger

Comments are closed.

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top