Southaven Power exclusivity extension approved by court

By Michelle Anderson

Rochester, N.H., April 11 - Southaven Power, LLC obtained approval of its exclusivity extension over the objection of the debtor-in-possession administrative agent, according to a Wednesday filing with the U.S. Bankruptcy Court for the Western District of North Carolina Charlotte Division.

The exclusive plan-filing date was extended to June 15 from April 16 and the solicitation period to Aug. 10 from June 11.

In the objection, the DIP agent said the claims arbitration the company had been awaiting is now completed. The agent said the cases had 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.

The agent further said the company is provided 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. Lastly, it 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.

The court disagreed and overruled the objections contained in the April 3 motion.

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

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