Energy Harbors Corp (ENGH)

[Enterprising Investor]

FirstEnergy was an Ohio utility operating multiple nuclear power plants and coal-fired power generation stations in Ohio and Pennsylvania. The company filed for bankruptcy in 2018.

As part of its plan to emerge from bankruptcy, FirstEnergy proposed decommissioning three nuclear facilities, two in Northern Ohio and one in Western Pennsylvania.

The Ohio congressional majority and governor were aghast at this plan, and passed legislation subsidizing Ohio nuclear and coal-fired power plants.

FirstEnergy reversed course on the closures and emerged from bankruptcy as Energy Harbor Corp. in early 2020.

FirstEnergy’s major creditors were the large fixed-income focused investment manager Nuveen Asset Management and private equity/distressed investor Avenue Capital Group. Following the restructuring, the majority of Energy Harbor shares were held by Nuveen and Avenue.