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Judge delays decision on FirstEnergy Solutions restructuring plan

A federal bankruptcy court has delayed a decision to confirm the reorganization plan of FirstEnergy Solutions Corp., ordering the company to continue to negotiate with unions representing workers at its nuclear plants.

Approval of FES' bankruptcy plan had been expected this week following two days of hearings that began Aug. 20. But Judge Alan Koschik of the U.S Bankruptcy Court for the Northern District of Ohio has scheduled a follow-up hearing on the reorganization plan for Sept. 10, according to reports by WOSU Public Media and Crain's Cleveland Business.

"We are pleased with the progress made in the hearings, which resolved substantially all non-labor related issues pertaining to confirmation of our Plan," Angela Pruitt, an external spokesperson for FirstEnergy Solutions at public relations firm Sitrick and Company, said in an emailed statement. "We remain focused on confirming the Plan to exit bankruptcy by the end of 2019."

During hearings, Koschik reportedly urged FES to come to an agreement with labor unions representing workers at the company's Perry and Beaver Valley nuclear plants, which are in Ohio and Pennsylvania.

Akron, Ohio-based FES, its subsidiaries and FirstEnergy Nuclear Operating Company filed for Chapter 11 bankruptcy protection on March 31, 2018. The company submitted its sixth amended reorganization plan on July 23, 2019. On July 30, the company announced the appointment of an eight-person board whose members will take their seats once restructuring wraps in the fourth quarter of 2019.

FES is a separately managed subsidiary of FirstEnergy Corp.