Entergy New Orleans DIP appeal dismissed

By Caroline Salls

Pittsburgh, April 13 - Entergy New Orleans, Inc. indenture trustee The Bank of New York's appeal of the final order approving up to $200 million in debtor-in-possession financing for the company was dismissed Thursday by the U.S. Bankruptcy Court for the Eastern District of Louisiana.

In its motion to dismiss the appeal, the bank said it negotiated a settlement with the company and its parent Entergy Corp. that resolved the appeal issues.

The DIP was approved on Dec. 9.

On Dec. 2, the bankruptcy court turned down a request from Bank of New York for a delay in the final DIP hearing. Bank of New York had asked for an additional 30 days to conduct discovery.

It also requested that the court extend by 30 days a hearing to approve a summary judgment finding that the trustee does not have an interest or valid lien in insurance proceeds or that the company has a contractual right to use the proceeds.

According to the motion, Bank of New York wanted the extensions to provide it and other parties of interest sufficient time to conduct the necessary and proper discovery to defend the pending motions.

But Entergy New Orleans and Entergy - which is providing the DIP facility - objected to the extension, saying it was highly inappropriate after 60 days of discovery for Bank of New York to file a motion while discovery is in process outside of New Orleans involving Entergy New Orleans, Entergy and Bank of New York lawyers.

Entergy New Orleans provides electric and natural gas service to customers in New Orleans. It filed for Chapter 11 on Sept. 23, 2005. Its case number is 05-17697.

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