Entergy New Orleans looks to extend DIP term by one year in light of ongoing hurricane clean-up

By Caroline Salls

Pittsburgh, July 27 - Entergy New Orleans, Inc. requested court approval to extend the term of its debtor-in-possession financing by one year, according to a Thursday filing with the U.S. Bankruptcy Court for the Eastern District of Louisiana.

The company wants to extend the DIP's maturity date to Aug. 23, 2007 from Aug. 23, 2006.

Entergy New Orleans said its need to make cash payments in connection with the destruction caused to its businesses by Hurricane Katrina, primarily due to recurring obligations under fuel and power purchase contracts.

The company said it also still faces extraordinary storm restoration costs as it works to restore service to the city and maintain the safety and security of its operations.

According to the motion, the company lacks sufficient liquidity to meet these ongoing obligations without a DIP extension.

Entergy New Orleans provides electric and natural gas service to customers in New Orleans and is the smallest of Entergy Corp.'s five utility companies. Entergy New Orleans filed for Chapter 11 on Sept. 23, 2005. Its case number is 05-17697.

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