Southaven Power plan of reorganization confirmed

By Caroline Salls

Pittsburgh, Aug. 1 - Southaven Power, LLC's plan of reorganization was confirmed Friday by the U.S. Bankruptcy Court for the Western District of North Carolina, and the court granted the company's motion to waive the requirement to file a related disclosure statement.

As previously reported, the company said a disclosure statement filing and creditor vote were not necessary since the two potential voting classes, general unsecured creditors and equity holders, had already been deemed to accept the plan.

The plan calls for a full cash payment for unsecured creditors and reinstatement of all equity interests.

Southaven said it has completed the sale of its principal operating asset and has already paid its pre-bankruptcy and post-bankruptcy secured creditors in full.

Under the plan:

• Holders of administrative claims and priority tax claims will receive full payment in cash;

• Holders of general unsecured claims will receive payment in full in cash, plus interest; and

• Equity holders will retain their interests.

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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