La Paloma Generating granted final OK to use SunTrust cash collateral

By Caroline Salls

Pittsburgh, Jan. 18 – La Paloma Generating Co., LLC received final court approval to use the cash collateral of SunTrust Bank to fund its operations while in Chapter 11, according to an order filed Wednesday with the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, La Paloma requested court approval to use the portion of the $30 million of cash collateral in the SunTrust collateral account that is not necessary to cash collateralize the letters of credit outstanding under the SunTrust letter-of-credit facility.

The cash collateral use will terminate on June 2.

La Paloma is a 1,022 MW combined-cycle gas-fired power plant located in Kern, Calif. The company filed bankruptcy on Dec. 6 under Chapter 11 case number 16-12700.

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