The U.S. Bankruptcy Court for the Southern District of New York has approved the Chapter 11 reorganization plan for Westinghouse Electric, which said the authorization paves the way for its sale to a Canadian asset management company.
The reorganization plan was overwhelmingly supported by Westinghouse’s creditors, the company said in a Tuesday news release.
Brookfield Business Partners in January announced it would buy Westinghouse from Toshiba for $4.6 billion. The sale should be completed in the third quarter of 2018, subject to the usual regulatory and financial approvals.
Westinghouse Government Services, a limited liability corporation competing for nuclear cleanup contracts from the U.S. Energy Department Office of Environmental Management, would become part of Brookfield.
Westinghouse was part of a Fluor-led team that was a runner-up on a 10-year liquid waste management contract DOE awarded in October to a BWX Technologies-led group.
The Westinghouse financial woes were worsened by the company’s role as engineering, procurement, and construction contractor for two now-canceled power reactors at the V.C. Summer nuclear plant in South Carolina, analysts have said.
“Confirmation of our plan of reorganization is one of the final steps in the completion of our strategic restructuring” said Westinghouse President and CEO José Emeterio Gutiérrez in a press release. “We are on track to fulfil our promise to emerge from this strategic restructuring process as a stronger business partner while retaining our primary focus on safety.”
