Longview Power receives final court OK to access cash collateral

By Caroline Salls

Pittsburgh, May 20 – Longview Power LLC obtained final court approval to use the cash collateral of its pre-bankruptcy term lenders, according to an order filed Tuesday with the U.S. Bankruptcy Court for the District of Delaware.

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.

The cash collateral use will terminate on the earliest of 120 days from the company’s bankruptcy filing date, the effective date of a Chapter 11 plan and five business days following the receipt of a written notice of default.

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

© 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.