Court Disqualifies HSF Kramer from Pleasants Power Station Bankruptcy Case

Wilmington, Del. – September 16, 2026 -- The U.S. Bankruptcy Court has disqualified law firm HSF Kramer from representing Pleasants Power Station in its Chapter 11 proceedings, sustaining conflict-of-interest objections raised by Omnis Fuel Technologies and the Office of the United States Trustee.

Judge finds actual conflict tied to creditor TRAG

Judge Owens ruled that Kramer's prior representation of TRAG, the plant's largest asserted creditor led by Tony Robbins, created an actual conflict precluding its retention under Section 327. Kramer's work on TRAG's cash collateral protections, stipulations and releases was cited as "a glaring example of the conflict." Owens also found Kramer holds relevant client confidences it cannot disclose, and that even a potential conflict would cause "unnecessary confusion, inefficiencies, distraction and distrust."

Young Conaway steps into expanded role without disrupting the case

Young Conaway, already Delaware co-counsel designated to handle matters Kramer could not, remains in place and is expected to absorb Kramer's broader responsibilities. Owens expressed "grave concerns" about the Debtor's independent manager originally hiring Kramer while it served TRAG, but said Section 327 left her no choice. Debtor's counsel indicated it may appeal and orally sought a stay; Owens declined to rule on a stay without a written motion, and none has been entered.

Sale process for 1,278-megawatt plant continues on unchanged timeline

The ruling does not affect Houlihan Lokey's retention as investment banker for the West Virginia station's sale. Preliminary bids are due September 29, a stalking-horse bidder may be designated by October 22, final binding bids are due November 9, an auction is set for November 12 if competing bids qualify, and a sale hearing will follow November 18. Omnis Fuel Technologies supported Houlihan's retention and will help develop qualified bidders.

Cash collateral hearing and dismissal trial proceed as scheduled

An evidentiary hearing on final cash collateral begins October 13, where Omnis will challenge asserted debt, liens, releases and adequate-protection payments -- issues central to Owens' conflict finding. Omnis' motion to dismiss the case, along with its alternative request for an independent Chapter 11 trustee, remains set for trial December 8-11. Owens identified that trial as directly implicating TRAG; Kramer will no longer defend current management in those proceedings.

Omnis says disqualification restores confidence in process

"Disqualification removes a serious obstacle to confidence in this process," said Charles Gassenheimer, President of Omnis Fuel Technologies. The company said it will continue advocating for proposals that preserve plant operations and employment, including continued development of the Quantum Reformer hydrogen technology installed at the site, while pursuing its motion to dismiss or appoint an independent trustee.