| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers E > Headlines for Entergy New Orleans, Inc. > News item |
Entergy New Orleans granted 120-day exclusivity extension; ordered to show progress toward plan
By Caroline Salls
Pittsburgh, April 18 - Entergy New Orleans, Inc. obtained a 120-day extension to its exclusive periods to file a plan of reorganization and solicit votes on the plan, according to a Tuesday filing with the U.S. Bankruptcy Court for the Eastern District of Louisiana.
The company's exclusive plan filing period was extended to Aug. 21 from April 21 and the solicitation period to Oct. 18, 2006 from June 20.
Entergy New Orleans said the extension is necessary because the effects of Hurricane Katrina on its business keep it from "viewing its financial future clearly" and prevent it from formulating a plan of reorganization.
Specifically, the company said its future depends on when it can return to New Orleans and what amount of losses can be recovered through insurance proceeds, as well as when the losses would be recovered.
The company was also ordered to appear at status conferences on June 26 and July 26 to show its progress in formulating a plan.
The company's official committee of unsecured creditors objected to the exclusivity extension on April 5, saying none of the company's reasons for requesting the extension are justified, and Entergy New Orleans has not attempted to make meaningful progress in its Chapter 11 case.
"Rather than simply waiting for Entergy Corp. to determine when it is an opportune time to propose a plan of reorganization, the committee would like the opportunity to have its financial and legal advisers explore the possibility of proposing a plan of reorganization that would pay the unsecured claimants represented by the committee," the objection said.
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, and its case number is 05-17697.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.