Longview Power receives interim access to cash; plan hearing May 21

By Caroline Salls

Pittsburgh, April 15 – Longview Power LLC obtained interim court approval to use the cash collateral of its pre-bankruptcy term lenders, according to an order filed Wednesday with the U.S. Bankruptcy Court for the District of Delaware.

The final hearing is scheduled for May 21.

As previously reported, the company said it reached an agreement with the pre-bankruptcy term lenders on a proposed form of order for the consensual use of cash collateral, including roughly $14 million in cash held in the Longview debtors’ debt service reserve account.

Longview said the cash collateral use will provide it with liquidity to fund the administration of the Chapter 11 cases.

Under the interim order, the cash collateral use will terminate in 37 days if a final order has not been entered or on the effective date of the company’s Chapter 11 plan if that occurs sooner.

In addition, the court scheduled a combined hearing on confirmation of the company’s plan of reorganization and approval of the related disclosure statement for May 21.

Longview, an integrated power generation enterprise based in Maidsville, W.Va. The company filed bankruptcy on April 14 under Chapter 11 case number 20-10951.

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