Homer City Generation L.P., which owns three coal-fired electric power plants in the United States, filed for bankruptcy on Wednesday.
The company, which expects to continue operations during the Chapter 11 process, said the reorganization would eliminate $600 million of its debt.
NRG Energy Services will continue as the operator of Homer City's three plants, which are located near Pittsburgh, Pennsylvania and have an aggregate net capacity of 1,884 megawatts.
The reorganization plan was supported by about 86 percent of the Homer City's secured noteholders, but is subject to approval from the Delaware bankruptcy court, the company said in an emailed statement.
(Reporting by Arathy S Nair in Bengaluru; Editing by Savio D'Souza)