Filing Alert: Omnis Pleasants Chapter 11

Omnis Pleasants, LLC, a Belmont, WV-based owner and operator of a coal-fired power plant, filed for Chapter 11 protection on July 26, 2026, in the U.S. Bankr...

Omnis Pleasants, LLC, a Belmont, WV-based owner and operator of a coal-fired power plant, filed for Chapter 11 protection on Jul. 26 in the U.S. Bankruptcy Court for the District of Delaware.

The filing is intended to insulate the Pleasants Power Station—a two-unit, 1,278-MW coal-fired generation asset operating within PJM—from the overhang of former management's alleged fraud, unremediated defaults, and ongoing efforts to reassert control, and to effectuate a value-maximizing going-concern sale under section 363. The Debtor did not file pursuant to an RSA or prenegotiated plan; it enters chapter 11 under an independent governance structure installed via an Amended and Restated Forbearance Agreement, pursuant to which Gilbert Nathan was appointed Independent Manager and sole director and David Hindman (through AP Services, LLC) was appointed CEO in February 2026, displacing former Chairman and CEO Simon Hodson and affiliated insiders. The Debtor frames the Plant as a cash-generative asset—cleared PJM capacity commitments generate approximately $102 million in Capacity Revenue for the 2025/2026 delivery year, rising to approximately $123 million for 2027/2028, against roughly $45 million of annual fixed operating costs—and intends to file a bidding procedures motion and retain an investment banker to run a competitive marketing and sale process. The Debtor reports approximately $13 million of liquidity as of the Petition Date, which it expects (together with projected receipts) to fund the case, though it may pursue DIP financing at a later date, principally to fund necessary plant repairs.

The Debtor attributes its distress to nearly three years of misconduct and mismanagement by Hodson and affiliated insiders, who allegedly diverted capital and personnel toward a speculative hydrogen-production venture (the "Reformer") and a series of related-party transactions while starving the Plant of working capital. The resulting chronic undercapitalization produced recurring fuel shortages—coal inventories fell below 2,000 tons, or under five hours of run time—forced outages, deferred maintenance, loss of ash-disposal landfill access, and arrears on vendors, insurance, property taxes, and payroll. The Debtor's investigation has identified the alleged diversion of the $50 million WVEDA loan through circular fund transfers and more than $114 million in suspect Industrial Accessories Company invoices, as well as a below-cost ($30.54/MWh), related-party power purchase agreement with Hodson affiliate Element H that internal analyses projected would generate losses exceeding $1 billion over its term. In October 2025, FERC opened an investigation into the Plant's 2023–2025 operations that could subject certain Capacity Revenue to disgorgement and expose the Debtor to potentially significant fines.

The immediate impetus for the filing was an escalating control dispute: after independent management rejected a July 2026 attempt by former-management-affiliated equity holders to tender an uncertified $75.64 million check as a purported payoff of the TRAG/RGE loans, the Omnis Parties declared the forbearance terminated, purported to remove Mr. Nathan and reinstall former leadership, and signaled an intent to enter the Plant by force—prompting the Debtor to commence its case before further value erosion. The Debtor filed its voluntary petition in the U.S. Bankruptcy Court for the District of Delaware on July 27, 2026, with prepetition funded debt and guarantee obligations of approximately $70.8 million, comprising the approximately $50.9 million unsecured WVEDA loan guarantee (matured June 2026 and in default) and a purported $20 million unsecured Bilt note (in payment default), alongside a first-priority lien on substantially all of the Debtor's assets granted to TRAG/RGE to secure more than $80 million of loans made to the Debtor's non-debtor parent entities. The Debtor has stated it intends to investigate and prosecute estate claims against former management for the benefit of stakeholders.

The company reports $50 million to $100 million in both assets and liabilities. The filing indicates that there will be funds available for distribution to unsecured creditors. The case number is 26-11169.

Top Unsecured Claims

Form 204 Top Unsecured Claims
Source: Bondoro, Court filings

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