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Published on 8/2/2005 in the Prospect News Distressed Debt Daily.

Southaven unsecured creditor asks for official committee

New York, Aug. 2 - Southaven Power, LLC unsecured creditor Erie Power Technologies, Inc. asked the U.S. Bankruptcy Court for the Western District of North Carolina to direct the case administrator to appoint an official committee of unsecured creditors.

Erie Power, which has a claim of $2.11 million again Southaven, said that a committee is needed to ensure the unsecured creditors are heard, even though the company has a "relatively small" amount of general unsecured debt.

Erie noted that the administrator had previously said a committee would not be formed because only Erie and Centro, Inc., which has a $1,600 unsecured claim, are interested in participating.

But Erie Power said the bankruptcy code does not set a minimum size for a committee.

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


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