Southaven Power DIP agent objects to exclusivity extension

By Caroline Salls

Pittsburgh, April 3 - Southaven Power, LLC's debtor-in-possession agreement administrative agent objected to the company's request for an exclusivity extension, saying the claims arbitration the company has been awaiting is now completed, according to a Tuesday filing with the U.S. Bankruptcy Court for the Western District of North Carolina.

The agent said the cases have been ongoing for almost two years and no objections were raised to the first four exclusivity extension motions because the arbitration was still ongoing, but now that it has been completed, another extension does not seem to be justified.

Also, the agent said the company provides no indication in the motion as to when, if ever, it might receive the additional claims arbitration distribution information it claims to need in order to be able to formulate a plan of reorganization.

The agent said the additional information does exist, even if it is not as detailed as Southaven would like it to be, and the lenders are getting frustrated because the arbitration seemed to be used as an excuse to extend exclusivity instead of to make progress toward a plan.

Southaven Power, an energy and transportation company based in Southaven, Miss., filed for bankruptcy on May 20, 2005. Its Chapter 11 case number is 05-32141.

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