Heritage Power Goes Bankrupt in Texas, Eyes Secured Debt Swap

Heritage Power LLC filed for Chapter 11 bankruptcy protection on Tuesday, blaming lower electricity prices and higher costs for the firm’s need to cull contracts along with its debt load.

The Texas-based power company has struck a restructuring deal with its parent company, GenOn Energy Holdings, and certain lenders, in order to cut back its debt, according to a statement. GenOn suffered its own bankruptcy case in 2017 also as a result of cheap electricity prices. The Chapter 11 filing allows Heritage to continue operating while working out a plan to repay creditors.

Under the plan, which is …