Pleasants Power Station owners challenge Chapter 11 bankruptcy filing

Owners of the Pleasants Power Station in West Virginia have filed a motion in the U.S. Bankruptcy Court for the District of Delaware to dismiss the facility's Chapter 11 bankruptcy filing or, alternatively, appoint an independent trustee.

Omnis Fuel Technologies and Quantum Pleasants, LLC argue that the 1,278-megawatt power plant is financially healthy, cash-flow positive, and possesses approximately $13 million in liquidity. They contend the bankruptcy was filed in bad faith as a tactical maneuver to obstruct governance rights following a failed attempt to secure an injunction in state court.

The dispute involves management connected to investor Tony Robbins. While the current management maintains that bankruptcy was necessary to stabilize the company and facilitate an orderly sale amid $79 million in debt, the plaintiffs argue that financial distress is a prerequisite for a good-faith filing and that such distress does not exist in this case.